AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, has reported a significant increase of 54.24pct YoY in earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q1, reaching USD 563 mln. This rise in earnings can be attributed to higher steel shipments and reduced costs compared to the same period last year when EBITDA stood at USD 365 mln.
Moreover, the company witnessed a remarkable 65.10pct sequential increase in earnings, primarily driven by higher average steel selling prices and cost efficiencies. In the previous quarter, the EBITDA figure was at USD 341 mln.
Crude steel production also showed positive growth, reaching 1.8 mln tons, representing a YoY increase of 7.4pct. This production level remained stable QoQ as the impact of an 85-day furnace shutdown was balanced by higher production from the DRI route.
While steel shipments saw a significant YoY increase of 11.1pct at 1.7 mln tons, they were lower by 8.3pct QoQ. This decline in QoQ steel shipments was due to the planned maintenance of the hot strip mill.
The company remains focused on its expansion plans, particularly the Hazira plant, which is slated to reach a capacity of 15 mln tons by 2026. The progress of this expansion is reported to be on track.
In terms of India’s steel market outlook, ArcelorMittal is optimistic, expecting another strong year with apparent steel consumption growth forecasted to be in the range of 6 to 8pct. This projection remains unchanged from the company’s previous guidance.
