ArcelorMittal, the global leader in steel and mining, reported a decline in earnings for Q3 2024. EBITDA fell 26.4pct YoY to USD 1.58 bln, also down 15.1pct compared to Q2 2024. This was mainly due to weaker results in North America, where price-cost pressures weighed on performance, and in Europe, which experienced seasonally lower steel shipments. However, the Brazil segment saw an improvement due to higher volumes and reduced costs.
Sales revenue for Q3 2024 decreased by 8.55pct YoY to USD 15.2 bln and was also 6.48pct lower than the previous quarter.
For the first nine months of 2024, EBITDA fell nearly 26pct YoY to USD 5.39 bln, with sales revenue declining 11.1pct YoY to USD 47.7 bln.
ArcelorMittal’s crude steel output in Q3 2024 declined 2.63pct YoY to 14.8 mln tons but rose 0.68pct sequentially. For Jan-Sep 2024, crude steel production decreased by 1.1pct YoY to 43.9 mln tons. Steel shipments in Q3 2024 were down 2.1pct YoY to 13.4 mln tons and 3.6pct lower than the previous quarter. In Jan-Sep 2024, steel shipments fell 3.78pct YoY to 40.7 mln tons.
CEO Aditya Mittal noted that while economic sentiment remains subdued, the company’s financial performance reflects its structural strength. He expects stronger demand in the second half of 2024 compared to 2023, driven by low inventory levels that suggest restocking when real demand recovers. He also expressed concern over increasing imports into Europe and stressed the need for stronger trade measures, including improvements to the Carbon Border Adjustment Mechanism (CBAM) to ensure European steelmakers remain competitive.
The company cautioned that current market conditions are unsustainable due to China’s excess production and aggressive exports, which are driving steel prices in Europe below the marginal cost curve. However, ArcelorMittal remains optimistic about demand recovery in H2 2024, especially in India and Brazil, and expects restocking activity once real demand picks up. Headquartered in Luxembourg, ArcelorMittal is the world’s second-largest steel producer, with an annual crude steel production capacity of approximately 81 mln tons as of December 31, 2023.
