• Skip to main content

    Market Segment

    February 6, 2020

    ArcelorMittal Reports Big Loss in 2019

    Written by Sandy Williams

    ArcelorMittal posted a net loss of $1.9 billion for the fourth quarter of 2019. In comparison, the global steelmaker posted a loss of $539 million in Q3 and a net profit of $1.19 billion in Q4 2018. For the entire year 2019, ArcelorMittal posted a net loss of $2.5 billion compared to net income of $5.1 billion in 2018.

    “2019 was a challenging year for the global steel industry,” said ArcelorMittal Chairman and CEO Lakshmi Mittal. “Macro headwinds were exacerbated by supply chain destocking, resulting in demand weakness in our core markets and significant spread compression to levels that were both exceptional and unsustainable. Despite the continued macro uncertainty, the destocking cycle appears mature and the recent trends for steel spreads in our core markets have been more encouraging.”

    Sandy Williams

    Read more from Sandy Williams

    Latest in Market Segment

    Canadian minister urges probe of Cliffs’ handling of Stelco

    Canadian Minister of Industry Melanie Joly has urged that Canada’s Competition Bureau examine Cleveland-Cliffs’ conduct in the Canadian marketplace following its Stelco acquisition. Minister Joly sent a letter to Jeanne Pratt, Commissioner of Competition, on Friday, regarding testimony Cliffs Chairman and CEO Lourenco Goncalves made to the US Congressional Steel Caucus, and a subsequent interview to the CBC. oly said that in the Caucus testimony, “Goncalves stated that his company had acquired Stelco to ‘block’ it from selling into the US market.”

    U.S. Steel, USW deadlocked in labor contract talks despite Cliffs deal

    The United Steelworkers (USW) accused U.S. Steel of “dragging their feet” in labor contract negotiations on Friday. The USW said in a text to members that it delivered a proposed labor contract to U.S. Steel on Oct. 30 and that the company asked to meet with union negotiators the following Thursday and Friday. “When we met (Thursday), they gave us no response on wages or the majority of the outstanding items,” the USW said, adding that U.S. Steel’s lead negotiator unexpectedly left the bargaining table on Friday.

    Drilling activity ticks up in the US, eases in Canada

    The latest tally of active drilling rigs moved marginally higher in the US, up for the first time in five weeks. Activity eased in Canada this week, according to oil and gas rig count data published by Baker Hughes. The US rig count increased to 604 rigs this week, setting an 18-month high watermark. Compared with this time last year, 56 more rigs are in operation today. Canada’s count declined by three to 223 rigs this week, easing for the first time in three weeks. Activity is up from the same week of 2025, with 32 more rigs operating today.

    Cliffs, USW reach tentative four-year labor deal

    Cleveland-Cliffs and the United Steelworkers (USW) announced on Friday that they had reached a tentative deal for a new, four-year labor pact. The Cleveland-based steelmaker said the agreement covered approximately 12,000 USW members in Indiana, Ohio, Pennsylvania, Minnesota, and Michigan. The company noted that the deal included workers not only at its steel plants but also its mining operations—in other words, all of its USW labor contracts up for renewal. “Our USW-represented employees do work that is essential to Cleveland-Cliffs and to our country. These agreements recognize their contributions and give us the stability we need to invest, compete and continue strengthening American steelmaking," Cliffs Chairman and CEO Lourenco Goncalves said in a statement.

    Nucor temporarily halts secondary offers, sending shock waves through a tight market

    Nucor opened its secondary and excess product bid list across all its flat-rolled mills on Monday, as it typically does, market participants told SMU. But by Wednesday, when bidding was scheduled to close, Nucor notified buyers it would not be awarding any bids this week. The abrupt close sent a shock through the secondary market, they said. "Nucor pulled their excess and secondary lists this week and is not selling anything," a Midwest buyer said.