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ArcelorMittal Update on ACIS

Steel News - Published on Fri, 07 Aug 2020

Image Source: ArcelorMittal
ACIS segment crude steel production in 2Q 2020 decreased by 34.7% to 2.0Mt as compared to 3.0Mt in 1Q 2020 primarily due to weak demand caused by the COVID-19 pandemic effects in all regions, in particular due to the lockdown measures in South Africa.

The direct COVID-19 impact in 2Q 2020 in the CIS region was more limited than in South Africa. During the quarter, ArcelorMittal South Africa took several steps (including significant production cuts across all operations) to support the country’s lockdown.

However, the economic activity levels remain weak and having reassessed its strategic asset footprint for 2020, the Company has decided to idle blast furnace C at Vanderbijlpark and the Vereeniging electric arc furnace until demand recovers.

Steel shipments in 2Q 2020 decreased by 8.4% to 2.4Mt as compared to 2.6Mt as at 1Q 2020, mainly due to COVID-19 impact in South Africa (down 54.1%) offset in part by improved shipments in Kazakhstan.

Sales in 2Q 2020 decreased by 18.2% to $1.2 billion as compared to $1.4 billion in 1Q 2020 primarily due to lower steel shipments (-8.4%) and lower average steel selling prices (-13.4%).

Operating loss in 2Q 2020 was $70 million as compared to an operating loss of $60 million in 1Q 2020 and an operating income of $114 million in 2Q2019.
EBITDA was $5 million in 2Q 2020 as compared to $47 million in 1Q 2020, primarily due to deteriorating results in South Africa during the lockdown period.9

EBITDA in 2Q 2020 was lower as compared to $199 million in 2Q 2019. primarily due to negative price-cost effect and lower shipments (-24.7%) driven by COVID-19 impact.

Source :

Posted By : Yogender Pancholi on Fri, 07 Aug 2020
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