ArcelorMittal 4Q Sales Hit by Lower Steel Demand Due to Pandemic -- Commodity Comment

Luxembourg-based steel-and-mining company ArcelorMittal on Thursday said it that its fourth-quarter sales dropped to $14.18 billion from $15.51 billion, mostly due to the impact of the coronavirus pandemic on overall steel demand.

On 2020 steel shipments:

"Total steel shipments for 2020 were 69.1 million metric tonnes (Mt) representing a decrease of 18% as compared to 84.5 Mt in 2019. On a comparable basis, adjusting for the impact of the remedy asset sales related to the ArcelorMittal Italia acquisition in 2019 and ArcelorMittal USA sale in December 2020, steel shipments for 2020 declined by 16% to 60.1 Mt as compared to 71.3 Mt in 2019, primarily due to the impact of the Covid-19 pandemic and the slowdown that occurred in 1H 2020."

On steel's impact on sales:

"Sales for 2020 decreased by 25% to $53.3 billion as compared with $70.6 billion for 2019, primarily due to the impacts of the Covid-19 pandemic on lower steel shipments and average steel selling prices (-8.7%)."

On steel shipment outlook:

"Recovery in steel shipments: Recovery in apparent steel demand (growth of 4.5% to 5.5% is currently forecast in 2021 vs. 2020); steel shipments are expected to increase YoY on an adjusted basis."

On iron ore production:

"Own iron ore production in 4Q 2020 increased by 3.5% to 15.3Mt as compared to 14.8Mt in 4Q 2019."

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(END) Dow Jones Newswires

February 11, 2021 10:59 ET (15:59 GMT)

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