International Steel Mills

ArcelorMittal Q3 Earnings Drop on Weak Demand
Written by Laura Miller
November 9, 2023
ArcelorMittal’s earnings declined in the third quarter of 2023 both sequentially and on-year.
The Luxembourg-based global steelmaker posted Q3’23 net income of $929 million, on sales of $16.6 billion that slipped 11% from Q2’23 and 12% from Q3’22.
Global shipments in Q3 totaled 13.7 million metric tons (mt) compared to 14.2 million mt in the prior quarter and 13.6 million mt in the year-ago quarter.
The Q3 earnings report was clouded by the company’s comments on the devastating accidents at its Kostenko coal mine in Kazakhstan on Oct. 28, which resulted in 46 deaths. The company noted that its steel operations (excluding CIS) have been fatality free year-to-date 2023.
The global conglomerate said it is “experiencing real demand weakness,” noting that “business confidence has deteriorated as the year progressed.” At the same time, it remains positive on steel demand in the medium- to long-term.
ArcelorMittal noted that US government infrastructure spending should be equivalent to an additional 5-9% of annual flat steel demand. It also commented that automotive demand has been “relatively better” but was impacted by the UAW strikes.
North America Results

In the quarter, ArcelorMittal shipped 2.328 million mt of flat products in North America (NA) – 1.5% less than the prior quarter but 53% more than the year-ago quarter.
Q3 long product shipments of 1.283 million mt were 4% higher sequentially but down 5% year over year.
The sequential decline in shipments combined with lower steel prices resulted in a 9% drop in Q3 NA sales to $3.188 billion.
The segment’s Q3 Ebitda of $645 million was down 18% sequentially but 1% higher year over year.
ArcelorMittal’s North American assets include the sheet-making operations of ArcelorMittal Dofasco in Canada, ArcelorMittal Mexico, and AM/NS Calvert in Alabama. It also has long product, mining, tubular, and tailored blank operations.
AM/NS Calvert Operations

Production on the hot strip mill at the AM/NS Calvert joint venture was down 1.7% from Q2’23 to 1.178 million mt.
Demand was lower from service centers and toll processors, the company said. This caused an 8% quarter-over-quarter drop in Calvert’s shipments to 1.063 million mt.
The only update on the construction of the Calvert mill’s new 1.5-million-mt-per-year electric-arc furnace (EAF) was that the project is “ongoing.”

Laura Miller
Read more from Laura MillerLatest in International Steel Mills

Ternium’s Vedoya named AIST’s Steelmaker of the Year
Maximo Vedoya was awarded in recognition of Ternium’s expansion project in Pesquería, Mexico, and Ternium’s efforts to decarbonize steelmaking.

CRU: Baosteel hints at output cuts in China
Baosteel exec comments on market rumors of 50 million tons of output being cut this year, less than 0.5% of the 1 billion tons-plus China has produced annually in recent years.

POSCO mulls teaming up with Hyundai on Louisiana mill
South Korea’s POSCO is eyeing linking up with Hyundai Steel in the project to build a steel plant in Louisiana, according to media reports.

Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.

Japanese PM cites ‘unjust political interference’ in Nippon/USS deal: Report
Japan’s Prime Minister Shigeru Ishiba said on Monday that former President Joe Biden’s decision to block Nippon Steel’s buy of U.S. Steel was “unjust political interference,” according to a report in Reuters. This comes after another Reuters report on Friday saying that President Trump would not object to Nippon taking a minority stake in the […]