ArcelorMittal Reports Massive Drop in Q2 Net Income Amid Tough Market Conditions

ArcelorMittal, the leading steel and mining firm, reported a 72.9% decline in net income for Q2 2024, totaling USD 504 million. Sales also fell to USD 16,249 million. The company attributes this to excessive Chinese exports impacting global steel prices. However, it remains optimistic about future growth and shareholder returns.

ArcelorMittal, the world's leading integrated steel and mining company, recorded a significant decline in its net income for the second quarter of 2024, with figures plummeting by 72.9% to USD 504 million.

In a striking contrast, the company had reported a net income of USD 1,860 million during the same period last year. The drop is attributed to excessive steel exports from China that have disrupted market equilibrium, pushing prices below marginal costs in Europe and the US.

Despite the financial setback, ArcelorMittal remains optimistic about long-term demand and market positioning. The company enjoys a robust balance sheet and foresees strong steel consumption growth, particularly in India. Inventories are at a low, indicating potential demand growth ex-China.

(With inputs from agencies.)