ArcelorMittal Europe reduced steel output by 13.3% y/y in 2022

ArcelorMittal Europe, the European division of the largest steel producer in the world, in 2022, reduced steel production by 13.3% y/y – to 31.9 million tons. This is stated in report, published by the corporation.

In the fourth quarter, steel production at European steel plants decreased by 13% compared to the previous quarter and by 19.3% to the same period in 2021 – to 6.96 million tons.

In 2022, steel shipments amounted to 30.18 million tons, which is 9% less compared to 2021. In October-December 2022, the European division of the company reduced the shipment of finished products by 3.9% q/q and by 18.3% y/y.

The company explains the reduction in steel production in the fourth quarter of 2022 and for the year as a whole due to capacity shutdowns amid weak apparent demand.

“The reduction in steel production in the fourth quarter of 2022 and for the year as a whole occurred amid capacity shutdowns due to weak apparent demand. As demand improves, production facilities across Europe are gradually restarting,” the company said.

Steel sales in 2022 increased by 9.1% y/y – up to $47.26 billion amid favorable start of the year. But in the fourth quarter of 2022, the indicator decreased by 5.8% q/q and by 16.6% y/y – to $10.1 billion.

ArcelorMittal Europe’s operating profit in 2022 decreased by 24.3% y/y – to $4.92 billion. The company ended the fourth quarter with a loss of $10 million. EBITDA for the year amounted to $6.03 billion, which is 10% less y/y. For the quarter, EBITDA decreased by 67.1% q/q and by 6.6 times y/y.

As GMK Center reported earlier, in 2022, ArcelorMittal reduced steel production by 14.6% compared to the same period last year – to 59 million tons. Steel shipments for the year fell by 11.1% y/y – to 55.9 million tons. Iron ore production increased by 9.2% compared to 2021 – up to 28 million tons. Sales of iron ore reached 28 million tons, which is 7.7% more y/y.

The company’s net profit for the year decreased by 37.8% compared to 2021 – to $9.302 billion. EBITDA decreased by 27% y/y – to $14.16 billion, and revenue increased by 4.3% y/y – up to $79.84 billion.

ArcelorMittal is a leading global steel and mining company with presence in 60 countries and production assets in 18 countries.