ArcelorMittal, the world's leading integrated steel and mining company, on Thursday reported a 72.9 per cent drop in net income at USD 504 million for the second quarter ended June 30, 2024.

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The company had posted a net income of USD 1,860 million in the corresponding period of the previous fiscal.

The net income is attributable to equity holders of the parent company.

The sales of the company in the April-June period dropped to USD 16,249 million over USD 18,606 million in the year-ago period, ArcelorMittal said in a statement. 

The company said that exports from China left the steel market in an unsustainable position. 

"Company believes current market conditions are unsustainable. China's excess production relative to demand is resulting in very low domestic steel spreads and aggressive exports; steel prices in both Europe and the US are below the marginal cost," it said. 

According to ArcelorMittal Chief Executive Officer Aditya Mittal, financially, the company's performance in the April-June period was broadly similar to the preceding quarter, reflecting continued subdued economic sentiment.Inventories are at a low level which will support apparent steel demand growth ex-China of between 2.5 per cent and three per cent this year."The Company enjoys a healthy balance sheet, from which it can continue to invest for growth and market share and consistently return cash to shareholders," he said.

In India, the company continues to expect another strong year with apparent steel consumption growth within the range of 7.5 to 9.5 per cent compared to the previous expectation of 6.5 to 8.5 per cent.

The company said that it remains positive on the medium, long-term steel demand outlook.