ArcelorMittal Raises Full-Year Guidance for Iron Ore Shipments -- Commodity Comment

By Will Horner

ArcelorMittal said iron ore shipments in the third quarter were better-than-expected and raised its guidance for full-year market-priced iron ore shipments.

On its iron ore mining:

ArcelorMittal lifted its guidance for market-priced iron ore shipments due to increased production at its ArcelorMittal Mines Canada operation. The Luxembourg-based company said it now expected full-year 2020 market-priced iron ore shipments to be broadly stable with 2019 levels. The company had been guiding for a 5% decline.

Market-priced iron ore shipments rose to 9.8 million tons in the third quarter, a 7.5% increase on the second quarter, as Covid-19 related supply disruptions at the AMMC facility eased.

ArcelorMittal said it mined a total of 14.8 million metric tons of iron ore in the third quarter of the year, 8.9% more than in the previous quarter.

On its coal production:

ArcelorMittal said, however, that coal production fell as output at mines in Kazakhstan and Princeton, WV slipped.

Coal production in the third quarter came in at 1.2 million tons, a decrease of 11.1% compared to the second quarter.

Market-priced coal shipments in the third quarter also declined by 11.1% to 600,000 tons.

On its outlook:

ArcelorMittal said the easing of lockdowns has seen activity and demand improve and that it was bringing idled operations back online. However, demand remains below normal levels and the recovery looks uncertain, it added.

"As concerns around second wave impacts persist, the company maintains its flexibility to quickly adapt production as conditions evolve," it said.

Write to Will Horner at [e-mail]

(END) Dow Jones Newswires

November 05, 2020 07:19 ET (12:19 GMT)

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