The crisis in the steel industry once again takes away half of Arcelormittal’s profit. In the same way that happened in the first half of the year, the results until September of the steel company recorded a 55% decrease in profits, which stood at 1,729 million dollars (1,607 million euros, at the current exchange rate). The signature He justified the fall due to overproduction in China, which plummeted prices in the region, and weakness in Europe.
Meanwhile, the company also saw a double-digit drop in revenue. They gave up 11.2% ground until September to 47,727 million dollars (44,369 million euros).
The Luxembourg-based organization lamented that “current market conditions are unsustainable.” They are weighed down by “the excess of production in China in relation to demand, which is resulting in most producers registering losses and aggressive exports.” Furthermore, he admits that “steel prices, particularly in Europe, are well below the marginal cost curve.”
Precisely in the Old Continent, Aditya Mittal, CEO of the group, warned that increases in the level of imports from other markets “are a cause for concern” and called for “urgently more energetic trade measures to address it.” “Further strengthening is needed to ensure that European steelmakers can remain competitive against imports with higher emissions,” he warned.
Although it is not the focus of criticism, the business in the United States also recorded declines of almost 25% in accumulated EBITDA during the first nine months of the year.
Despite this, Arcelormittal expects demand in the second half of 2024 to be higher than the second half of 2023, mainly due to increases in India and Brazil, and is trying to be optimistic: “As absolute inventory levels remain low, “Particularly in Europe, the company believes that replenishment activity will occur once real demand begins to recover.”
Along these lines, Mittal also predicted that “The medium and long-term outlook is positive.”
#Arcelormittal #cuts #profit #due #price #crisis #Asia #Europe
