|Bid||32.19 x 4000|
|Ask||0.00 x 1000|
|Day's range||32.32 - 32.95|
|52-week range||19.59 - 37.50|
|PE ratio (TTM)||6.99|
|Earnings date||21 Feb 2017 - 27 Feb 2017|
|Forward dividend & yield||0.10 (0.30%)|
|1y target est||43.03|
According to the AISI (American Iron and Steel Institute), US steel production rose 0.3% YoY (year-over-year) in the week ended June 9. Although US steel production has gained traction over the last couple of months, it has risen only 1.8% YoY so far this year. The US steel industry’s capacity utilization rate is also languishing at 74.8%—way below the 80% utilization rate the Commerce Department intends to achieve with the Section 232 tariffs.
Solid earnings performance, upbeat outlook and the company's internal initiatives have contributed to a rally in ArcelorMittal's (MT) shares.
ArcelorMittal's (MT) latest move supports decarbonization of the transport sector and will enable it to revolutionize blast furnace carbon emissions capture.
According to a poll by Thomas Reuters on June 8, ArcelorMittal (MT) has received a “buy” or higher rating from 16 analysts. On June 7, UBS downgraded ArcelorMittal from a “buy” to “sell” and lowered the target price from 30 euros to 25 euros. Last month, ArcelorMittal received approval from the European Commission to acquire Ilva.
(MT.AE) said Monday that it has started construction on a €150 million ($176.5 million) installation at its site in Ghent, Belgium, that will convert carbon emissions into bioethanol. The steelmaker had previously said it would invest €87 million in the plant, which is being developed in partnership with Chicago-based carbon recycling specialist LanzaTech. LanzaTech’s technology uses microbes that feed on carbon monoxide produced by ArcelorMittal’s blast furnaces to create bioethanol that can be used as fuel or as a feedstock to manufacture plastics, the company said.
11 June 2018 - ArcelorMittal has begun construction of new premises at its site in Ghent, Belgium, to house a pioneering new installation which will convert carbon-containing gas from its blast furnaces into bioethanol. If proved successful, the new concept has the potential to revolutionise blast furnace carbon emissions capture and support the decarbonisation of the transport sector. The technology in the gas conversion process was pioneered by Chicago-based company, LanzaTech, with whom ArcelorMittal has entered a long-term partnership.
Smoke drifts across the ancient harbor in Taranto on Italy’s southern coast as fishermen sort their catch against brickwork stained black by decades of pollution. Across the bay, the chimneys of Europe’s biggest steel plant dominate the skyline as its furnaces dominate the local economy. Without the 1.8 billion-euro takeover by ArcelorMittal due to be completed June 30, the state-controlled plant will run out of cash by July, threatening the livelihoods of a quarter of the families in this city of 200,000.
The head of ArcelorMittal's (MT.AS) French division called on Friday for quotas and safeguards to protect the European steel industry, in light of the United States' decision to impose tariffs on steel and aluminium imports. The comments from ArcelorMittal executive Philippe Darmayan echoed similar views from other European steel executives, with Tata Steel's Dutch arm having also called on the European Union to shield the European market from cheap imports. "We would like safeguards to be put in place at the European borders, preferably as soon as possible, in order to stabilise the market....," Darmayan told France Info radio.
The head of ArcelorMittal's French division called on Friday for quotas and safeguards to protect the European steel industry, in light of the United States' decision to impose tariffs on steel and aluminum imports. The comments from ArcelorMittal executive Philippe Darmayan echoed similar views from other European steel executives, with Tata Steel's Dutch arm having also called on the European Union to shield the European market from cheap imports. "We would like safeguards to be put in place at the European borders, preferably as soon as possible, in order to stabilize the market....," Darmayan told France Info radio.
Trump should understand the EU is no pushoverAFP/ArcelorMittal steel plant of Grande-Synthe, Northern France, on April 22, 2013. Fed up with waiting for Europe to cough up adequate concessions, Trump is expected to trigger the levies on imported EU steel and aluminum as soon as Thursday. “What we have learned with Trump is that the situation is dynamic and fluent,” said Peter Garnry, head of equity strategy at Saxo Bank.
As noted previously, China’s steel production has risen sharply this year. According to the CAAM (China Association of Automobile Manufacturers), China’s vehicle sales surged 11.5% YoY (year-over-year) to 2.3 million units. Thanks to this surge, the year-to-date sales growth now stands at an impressive 4.8%—comfortably above the 3% growth that CAAM predicted for the year.
Last week, the WSA (World Steel Association) released its global steel production data. According to the WSA, global steel production stood at 148.3 million metric tons in April, marking a 4.1% YoY (year-over-year) rise. In the first four months of this year, global steel production rose 4.0% YoY. Global steel production has risen, defying pessimists expecting a slowdown in the steel industry this year. Let’s look at April’s steel production data in detail.
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ArcelorMittal’s South African unit agreed to sell its half of steel trader and shipper Macsteel International Holdings BV to a company founded by South African steel billionaire Eric Samson, which owns the other 50 percent. Macsteel Holdings Luxembourg SARL will pay $220 million for the stake, ArcelorMittal South Africa Ltd. said in a statement Monday.
According to preliminary data released by the United States Census Bureau, the country imported 3.4 million metric tons of steel products in April. In comparison, US steel imports stood at ~3.0 million metric tons in April 2017. Notably, steel imports rose on a yearly and a sequential basis last month. US steel imports have risen on a monthly basis for the second consecutive month.
As noted previously, US steel prices have settled at higher levels after rising sharply in the first quarter. However, the rises in US steel producers’ first-quarter earnings weren’t commensurate with the sharp gains in spot steel prices. The disconnect isn’t difficult to explain. There’s a lag between steel companies booking their sales and the steel getting shipped to the buyer.
Does the US Steel Industry Look Healthy This Month? The Section 232 temporary exemptions that were extended by President Donald Trump on April 30 are set to expire by the end of this month. As quoted by CNBC, the statement on the exemptions said, “The Administration is also extending negotiations with Canada, Mexico, and the European Union for a final 30 days.” By stating the word “final,” the Trump administration seems to have put pressure on the exempted countries.