Luxembourg-based steel producer ArcelorMittal has announced its financial results for the third quarter and the first nine months of the current year.
In the third quarter this year, ArcelorMittal recorded a net profit of $287 million, down from $504 million in the second quarter while its sales revenues declined by 6.5 percent from the second quarter to $15.2 billion on account of the softening of average selling prices and the 2.4 percent quarter-on-quarter decrease in shipments. The producer posted its EBITDA in the third quarter at $1.58 billion, down from $1.86 billion recorded in the second quarter primarily due to weaker results in North America because of the negative price-cost effect and in Europe because of seasonally lower shipments.
In the January-September period, the company registered a net profit of $1.73 billion, decreasing by 55.5 percent year on year, while its sales revenues totaled $47.23 billion, down by 11.2 percent, both year on year. The company registered an EBITDA of $5.39 billion in the first nine months, compared to an EBITDA of $7.29 billion in the corresponding period of the previous year.
ArcelorMittal’s crude steel production decreased by 1.1 percent to 43.9 million mt in the first nine months, while its iron ore production declined by 6.9 percent to 29.8 million mt, both year on year. The company’s total steel shipments in the given period amounted to 40.7 million mt, down by 3.8 percent year on year.
The company stated in its report that the current market conditions are unsustainable and that China’s excess production relative to demand results in very low domestic steel spreads, causing the majority of producers in China to incur losses, leading them to push exports. Apparent demand is expected to rise in the second half of 2024, compared to the same period last year. As inventory levels remain low in the company’s active markets, particularly in Europe, restocking activity will gain momentum once real demand begins to recover. ArcelorMittal has confidence that it will capture the anticipated growth in steel demand over the medium and long terms.