ArcelorMittal Reports a Significant Rebound in Q1, Recording Nearly $1.1 billion in Net Income

Europe: ArcelorMittal, a Steel producer based in Luxembourg, experienced a strong recovery in the first quarter of this year, reporting a net income of almost $1.1 billion. This marks a significant improvement since the prior quarter where they only earned $260 million. As expected, market conditions in the first quarter witnessed an improvement, with the cessation of customer destocking bolstering the apparent growth of Steel consumption and a resurgence in Steel spreads.

ArcelorMittal records higher profits in Q1 due to improved economic sentiment and operational efficiency resulting in increased EBITDA per ton. The market conditions have shown growth, but pricing lags have prevented full reflection in the results. The company expects further profitability increase in Q2. However, despite the improved performance compared to the previous quarter, ArcelorMittal's shipment, and sales numbers in Q1, 2023 remain below those of the previous year.

In the recently concluded quarter, the firm reported a total Steel shipment of 14.5 million metric tons, indicating a decline of 5.8% from the previous quarter's 15.3 million metric tons. The company's production in Ukraine has not fully recovered following the Russian invasion of the country. Additionally, the firm's overall European shipment saw a year-on-year decline of 7%.

ArcelorMittal reported a 15.8% increase in Steel shipments during the first quarter of 2023 in the USMCA region (United States, Mexico, and Canada) as compared to the first three months of the previous year. The boost in activity can be attributed to higher volumes of slabs sourced for its mill in Calvert, Alabama, and increased Steel shipments in Mexico.

ArcelorMittal reported a global sales figure of $18.5 billion in Q1, 2021, reflecting an increase from the $16.9 billion reported in the previous quarter. However, this figure marks a 15.3% decline from the $21.8 billion reported in the same period last year. The decline is attributed to lower average Steel selling prices (down 13.3%) and lower Steel shipments (down 5.8%). Despite geopolitical and economic uncertainty, ArcelorMittal's Q1 performance indicates its ability to perform well in all market conditions, which is promising for the rest of the year.