| ArcelorMittal Faces Major Headwinds in 2015 | |
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ArcelorMittal Could Turn Around But Faces Stiff Headwinds In 2015 (Part 14 of 14) (Continued from Part 13) Headwinds for ArcelorMittal
ArcelorMittal (MT) expects its steel shipments to increase by almost double the global average. Two of ArcelorMittal’s blast furnaces are expected to be operational this year. The company should complete the relining of its blast furnace in Newcastle, South Africa. 2015 will also bring the full-year impact of its restarted blast furnace in Brazil. However, there are several headwinds that ArcelorMittal must face this year.
Russian exports
ArcelorMittal’s European operations face the risk of higher exports from Russia. The U.S. Department of Commerce (or DOC) has revoked a 15-year-old treaty with Russia. This deal exempted hot-rolled coil (or HRC) imports from Russia from anti-dumping duties. The chart above shows the major steel exporters to the US.
After the scrapping of this deal with the US, steel supply should increase in Russia. This increase, coupled with weak domestic demand, might lead to an increase in exports to neighboring countries. The Commonwealth of Independent States (or CIS) and Europe might see an increase in steel exports from Russia as a result. This change could negatively affect ArcelorMittal’s operations in this region.
A potential pullout of Greece from the European Union could also affect market sentiments in that region. The global steel industry is already grappling with the slowdown in Chinese steel consumption.
Lower steel prices
Average steel prices should be much lower in 2015 compared to last year. This is a major headwind that steel companies like U.S. Steel (X), Nucor (NUE), and Steel Dynamics (STLD) face this year. ArcelorMittal should also be negatively affected by lower iron ore prices. Its mining division will see a negative impact in 2015 if iron ore prices stay low. Lower iron ore prices should also negatively affect the SPDR S&P Metals and Mining ETF (XME).
You can learn more about the steel industry by visiting our industry page.
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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United States Steel est une société de production minière de fer et de étain basée aux Etats-Unis D'Amerique. United States Steel est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 6,4 milliards US$ (5,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 mars 2003 à 10,01 US$, et son plus haut niveau récent le 30 novembre 2007 à 98,85 US$. United States Steel possède 176 184 431 actions en circulation. |