ArcelorMittal (MT) has released its fourth quarter and full-year 2024 results, providing key insights into the current dynamics of the global steel market. The report reveals a slight decrease in steel production, balanced by increased iron ore output and significant strategic investments in growth and sustainability.
Key Highlights from the Report:
- Production Figures: Steel production reached 57.9 million tons, a 0.3% decrease from 2023. Iron ore production increased by 0.9% to 42.4 million tons.
- Financial Performance: ArcelorMittal achieved FY 2024 EBITDA of $7.1 billion and adjusted net income of $2.3 billion.
- Capital Allocation: The company generated $4.9 billion in operating cash flow and invested $2.8 billion in maintenance capex, with strategic investments including $1.3 billion in growth projects.
Strategic Initiatives and Developments:
- New Electrical Steel Facility: ArcelorMittal is moving forward with a $0.9 billion project to construct an advanced manufacturing facility in Calvert, Alabama. This facility will produce up to 150,000 metric tons of non-grain-oriented electrical steel (NOES) annually, supporting the electric vehicle market and reducing U.S. dependency on imports. Production is anticipated to commence in the second half of 2027.
- Decarbonization Efforts: ArcelorMittal is committed to reducing its carbon footprint, with absolute emissions down 50% from 2018. Current investments are focused on ramping up production of electric arc furnaces in Spain to produce low-carbon flat products.
- European Market Focus: ArcelorMittal is calling for further action in Europe to address global overcapacity and increased imports, emphasizing the need for policies that incentivize investment in decarbonization.
- Vega Complex Performance: The Vega cold rolling mill complex, commissioned in 1H 2024, is performing well, leading to increased galvanized and cold rolled coil capacity. The Company expects the EBITDA contribution from this project to be $0.1 billion in 12M 2025.
Aditya Mittal, CEO of ArcelorMittal, noted that while inventory levels are low and apparent demand is expected to improve, the industry continues to face challenges related to global overcapacity. He emphasized the importance of addressing these issues, particularly in Europe, and creating a policy environment that supports decarbonization.
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