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

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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