World’s Largest Steel Company, ArcelorMittal, Reports First Quarterly Profit in Two Years

by on

Steelmaker ArcelorMittal reported its first quarterly profit in two years as it reaped benefits from closing mills in Europe and a resurgence in US steel demand, but a glum outlook triggered a sharp slide in its shares all the same.

FREE Download: The Monthly MMI® Report – covering Steel/Iron Ore markets.

A sharp drop in iron-ore prices caused the company to reduce its full-year earnings forecast, underscoring how dependent the world’s biggest steelmaker has become on mining for its profits.

Luxembourg-based ArcelorMittal swung to a profit of $52 million in the second quarter compared with a loss of $780 million in the same period a year earlier.

ArcelorMittal’s sales of steel in North America jumped 13.1% compared with a year earlier to $5.4 billion. In Europe, sales declined slightly, but earnings increased by more than 40% to $689 million.

On Monday, August 4, the US HRC futures contract spot price experienced the biggest change, rising 1.5 percent to $675.00 per short ton. The 3-month price of the US HRC futures contract fell 0.8 percent to $641.00 per short ton.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($135.92) and a low price of CNY 830.00 ($134.30) per dry metric ton. For the fifth consecutive day, the price of Chinese HRC held flat at CNY 3,380 ($546.93) per metric ton. The price of Chinese coking coal was unchanged at CNY 1,390 ($224.92) per metric ton.

The steel billet cash price showed little movement yesterday on the LME at $420.00 per metric ton. The 3-month price of steel billet continues hovering around $425.00 per metric ton on the LME for the fifth day in a row.

{Comments Off on World’s Largest Steel Company, ArcelorMittal, Reports First Quarterly Profit in Two Years Comments Off on World’s Largest Steel Company, ArcelorMittal, Reports First Quarterly Profit in Two Years}