New Delhi: ArcelorMittal, the top global steel and mining company, announced a 72.9 pc decrease in net income to USD 504 million for the quarter ending June 30, 2024. In the same period of the previous fiscal year, the company reported a net income of USD 1,860 million. The profit belongs to the shareholders of the parent company.
ArcelorMittal stated that the company's sales decreased to USD 16,249 million from USD 18,606 million in the previous year's April-June period. The firm stated that Chinese exports have placed the steel market in an unsustainable condition. The company holds the belief that the current market conditions are not sustainable. China's surplus production compared to demand is causing extremely small local steel price differences and competitive exports; steel costs in Europe and the US are lower than the minimum cost," it stated. Aditya Mittal, CEO of ArcelorMittal, stated that the company's financial performance in the April-June period was generally comparable to the previous quarter, indicating ongoing weak economic sentiment.
Stock levels are low and will help drive steel demand growth outside of China to reach between 2.5 and 3 percent in the current year. He mentioned that the company has a strong balance sheet, allowing for investments in growth and market share while also consistently giving cash back to shareholders.
In India, the company still anticipates a robust year ahead with steel consumption growth expected to fall between 7.5 and 9.5 per cent, up from the previous range of 6.5 to 8.5 per cent. The company expressed confidence in the future demand for steel in the medium and long term and is confident in its ability to carry out its growth strategy while generating returns on capital.
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