Steel Mills
ArcelorMittal posts solid results as commissioning of Calvert EAF begins
Written by Laura Miller
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% |
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% |
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
Read more from Laura MillerLatest in Steel Mills
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).
Domestic mill shipments slip in July: AISI
US steel shipments decreased month over month in July, but were up from last year, according to the latest figures from the American Iron and Steel Institute (AISI).