Latest News

ArcelorMittal raises US tariff forecast to $150 mln

ArcelorMittal has increased its estimate of financial impact due to U.S. Tariffs. It now expects that they will reduce its core profits by $150 million in this year. This is more than the forecasted $100 million in February.

Genuino Cristino, Genuino's finance chief, said that the world's second largest steelmaker will respond by increasing its manufacturing in America.

Christino stated in an interview that the material we provide to the United States is of high value and cannot be replaced. "Our goal is to work closely with our customers to ensure that we can continue to provide, protect market shares and make a profit."

He said that the company had several options including sharing tariffs and costs with customers.

ArcelorMittal also plans to expand its U.S. footprint. In June, the company acquired Nippon Steel’s 50% stake in Calvert, gaining full control over the Alabama-based plant. Christino stated that the deal will transform the group's market presence.

The CFO confirmed that ArcelorMittal had successfully installed Calvert's electric-arc furnace. The furnace has a capacity of 1.5 million metric tons of low-CO2 steel per annum and is designed to produce automotive-grade steel.

ArcelorMittal, based in Luxembourg, signed a slab supply contract with Nippon Steel & U.S. Steel in June. The agreement covers a period of seven years and will see the group receive 750,000 metric tons of slabs per year, melted and poured, in the U.S.

Christino stated that the combination of the new furnace with the slab supply agreement will allow Calvert to qualify for about half its production as U.S. melted and poured. The remaining will continue to come from Brazil and Mexico.

(source: Reuters)