ArcelorMittal Forecasts Favorable Steel Market for Remainder of 2017

Researched by Industrial Info Resources (Sugar Land, Texas)--Global steel producer ArcelorMittal S.A. (NYSE:MT) (Luxembourg, Luxembourg), expects favorable market conditions for the remainder of this year and into 2018, the company said in its third-quarter earnings report on Friday. Earnings for the just-ended quarter amounted to $1.2 billion, up from $680 million in third-quarter 2016. Industrial Info is tracking more than $9 billion in ArcelorMittal project activity, with roughly half that amount tied to North American projects.

Operating conditions continue to improve, with key indicators implying a positive outlook for 2018, Chief Executive Officer Lakshmi Mittal said in the company's earnings release. He cautioned that the global market is still "characterized by overcapacity and high levels of imports."

Global steel shipments during the quarter totaled 21.7 million tons, up 0.6% over third-quarter 2016. For North America, steel shipments were up 4.3%. Global sales totaled $17.6 billion, compared with $14.5 billion in third-quarter 2016, primarily due to higher steel prices and shipments.

Capital expenditures for 2017 are expected to be $2.9 billion. Looking to 2018, the company said, capital expenditures are expected to increase in part because of investments in Mexico. ArcelorMittal has announced a $1 billion, three-year investment program at its Mexican operations, with a focus on building downstream capabilities, sustaining the competitiveness of mining operations and modernizing existing assets. The Mexico program "is designed to enable ArcelorMittal Mexico to meet the anticipated increased demand requirements from domestic customers, realize in full ArcelorMittal Mexico's production capacity of 5.3 million tons and significantly enhance the proportion of higher-value added products in its product mix," the company said.

In the U.S., ArcelorMittal plans to reline and rebuild the 4,350-ton-per-day C5 Blast Furnace at the company's Cleveland Steel Works site in Ohio. The $100 million project would return the furnace to optimum performance, with kick-off expected in 2019. For more information, see Industrial Info's project report.

At the company's 5-million-ton-per-year Burns Harbor Steel Works in Indiana, plans are underway to install two new walking beam furnaces to provide a sustained automotive footprint. The $20 million project would kick off in 2019. For more information, see Industrial Info's project report.

In Canada, Industrial Info is tracking projects tied to the Arcelor Mittal Dofasco steel operations in Hamilton, Ontario, including the $87 million reconstruction and restoration of coke plants #2 and #3. The project kicked off in 2015, with completion expected in 2019. For more information, see Industrial Info's project report.

ArcelorMittal also gave an update on anti-dumping and anti-subsidy trade actions. In the U.S., anti-dumping and anti-subsidy duties are in place on all four flat steel product categories, the company said. A national security investigation into steel imports continues, with the legal deadline for the Department of Commerce to submit its findings to the Trump administration by mid-January, after which the administration has 90 days to decide what action to take, if any.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.