Automotive order cancellations hit ArcelorMittal Europe shipments

ArcelorMittal Europe saw steel shipments fall 8% on-year and 9% on-quarter in the third quarter to 7.55 million tonnes as a result of weaker demand amid late cancellations of orders by the automotive sector. Moreover, logistic constraints linked to severe floods in July also curbed shipments.

Crude steel production was up 15% on the previous year at 9.09mt, but this was down 3% on-quarter. Sales rose 60% on-year and 5% on-quarter to $11.2 billion and operating income was $1.9 billion, versus a loss of $341 million a year earlier and up 60% on Q2. Average sales price was $1,098/tonne versus $948/t in Q2 and $651/t a year earlier.

Steel shipments in the nine months through September were up 2% on-year to 24.86 million tonnes, while crude steel output rose 13% to 28.17mt. Sales surged 73% to $31.26 billion and operating income was $3.79 billion versus a year-earlier loss of $995m.

Strong steel prices helped ArcelorMittal post in Q3 its highest consolidated net income and lowest net debt since 2008 (see separate Kallanish story). Steel shipments however dropped 17% on-year and 9% on-quarter to 14.6mt.

Adam Smith Germany