The steel industry is often viewed as an important benchmark for global growth since it contributes significantly toward construction and manufacturing. Global apparent steel consumption (ASC) saw around 2.8% year-on-year growth in 2018 due to strong Chinese demand (about 3.5%), driven by the strength of machinery output and a better than expected real estate market. However, steel consumption growth slowed in most economies in 2018 due to increased trade frictions and a weakening global economy. In the first 10 months of 2018 (y-o-y), global steel exports continued to decline, including exports from India (-29.3%), the US (-13.4%), China (-9.3%), the European Union (-6.4%), and Japan (- 3.1%). The downturn in the steel industry hit ArcelorMittal hard. “Market conditions were buoyant for the majority of 2018, but since October last year we have seen a downturn, the speed and extent of which has been surprising,” Aditya Mittal, chief financial officer of ArcelorMittal..

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LOOKING AHEAD

Notwithstanding the challenging market environment, ArcelorMittal ended the year 2019 with a gross debt of US$14.3 billion and net debt of US$9.3 billion, its lowest levels since the 2006 merger. One of the biggest achievements in 2019 was the company’s completion of the Essar Steel acquisition deal...

EXHIBITS

Exhibit I: Annual Crude Steel Production (In Million Metric Tons)
Exhibit II:ArcelorMittal’s Financial Highlights (on the basis of IFRS*)
Exhibit III: The World’s Largest Crude Steel Producers in 2018 by Production Volume
Exhibit IV: Apparent Steel Consumption in 2019 (Y/Y Change)
Exhibit V:ArcelorMittal’s Forecasts vs. Reality