ArcelorMittal reports 23 percent decline in shipments

Luxembourg-based steelmaker ArcelorMittal says it shipped 23.7 percent less steel globally in the first half of 2020 compared to the same time frame in 2019. The company also cites “the negative impact of the COVID-19 pandemic” for an operating loss of $300 million in the half-year ending June 30, 2020.

For the half-year, the company says it has experienced an operating loss of $600 million and a net loss of $1.7 billion, “with an adjusted net loss of $900 million excluding impairment and exceptional items.”

Despite the distressed business climate, ArcelorMittal says it has calculated EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.7 billion in the first half and $700 million in the second quarter, when COVID-19’s effects were the most severe.

“The first six months of the year, and particularly the second quarter, have been one of the most difficult periods in the history of the company, with demand for steel considerably disrupted by the COVID-19 pandemic,” states Lakshmi N. Mittal, ArcelorMittal’s chairman and CEO.

He continues, “There are now signs of activity picking up, especially in regions where lockdowns have ended, but clearly it is prudent to remain cautious about the outlook. Against this context, we are examining what structural changes might be required to ensure the company is well configured to prosper in the coming years as demand recovers.”

Mittal also says the firm’s future will be tied in part to efforts to meet corporate and government sustainability targets. “It has also become clear in recent months that governments around the world will align efforts to stimulate the economic recovery with the transition to a low-carbon economy. ArcelorMittal recently published its roadmap to reduce emissions by 30 percent in Europe by 2030, and we were encouraged to see last week’s proposal by the European Council to introduce a carbon border adjustment. Technologically we know that it should be possible to produce carbon-neutral steel, but success is co-dependent on policy, of which the carbon border adjustment is an important component, as is access to EU funds.”