Steel Mills

ArcelorMittal posts solid results as commissioning of Calvert EAF begins

February 6, 2025

AM/NS Calvert has begun commissioning its new electric-arc furnace, with plans to reach its full annual run rate of 1.65 million short tons a year from now.

ArcelorMittal CEO Aditya Mittal said the EAF’s ability to produce exposed automotive grades will be “game-changing.” However, due to the stringent qualifications process to supply automotive-quality steels, the ramp-up of the furnace will be slower.

The EAF should achieve a full ramp-up in volumes “roughly 12 months from today,” Mittal said on an earnings call on Thursday.

The announcement and call came alongside the release of the global steel giant’s fourth-quarter and full-year 2024 earnings report and news on the construction of a new electrical steel facility in Alabama.

With weak demand across 2024, ArcelorMittal believes the steel industry is at a cyclical low point. “Headwinds should ease in 2025,” it noted in an earnings presentation, and demand growth is expected.

“Whilst near-term demand remains subdued, inventory levels are low, especially in Europe, so the company is optimistic that restocking activity will supplement real demand improvement, in time,” it said.

Mittal commented that the company will focus on completing the Calvert EAF’s commissioning and completing the electrical steel line before starting on adding a second EAF at Calvert.

The company has been planning to double the capacity at its hot-briquetted iron plant in Corpus Christi, Texas. However, Mittal said they will reevaluate the expansion after completing the Calvert projects. This delay is linked to ArcelorMittal’s decarbonization plans in Europe, which have slowed, awaiting more supportive policy and market environments.

Highlights from the company’s North American operational results are included below.

ArcelorMittal North America

Fourth quarter ended Dec. 31	2024	2023	Change
Net sales	$2,625	$2,942	-10.8%
EBITDA	$289	$437	-33.9%
Flat steel shipments (mt)	1,883,000	2,185,000	-13.8%
Year ended Dec. 31
Net sales	$11,896	$12,978	-8.3%
EBITDA	$1,819	$2,452	-25.8%
Flat steel shipments (mt)	8,022	8,220	-2.4%

(in millions of dollars except shipments)

The company said declining steel prices were the main cause of lower earnings results for its North American operations.

Volumes continued to recover in Mexico following the months-long shutdown of the Lazaro Cardenas mill last year, the company said. Crude steel production at the mill continued to normalize in Q4’24, with a full recovery in output anticipated in the current quarter.

AM/NS Calvert

Fourth quarter ended Dec. 31	2024	2023	Change
Net sales	$1,010	$1,114	-9.3%
EBITDA	$134	$90	48.9%
Shipments (mt)	941,000	1,015,000	-7.3%
Year ended Dec. 31
Net sales	$4,544	$4,860	-6.5%
Net earnings (loss)	$614	$374	64.2%
Shipments (mt)	4,232	4,469	-5.3%

(in millions of dollars except shipments)

Weaker demand and lower shipments drove a 4.1% sequential decline in AM/NS’ fourth-quarter sales, while lower costs pushed EBITDA 7.0% higher, according to the earnings report.

Remember, AM/NS Calvert is a joint venture of ArcelorMittal and Nippon Steel.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. 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.