ArcelorMittal Registers 56% EBITDA Decline Following Pressure on Prices

ArcelorMittal/Nippon Steel India, the Indian arm of London-based steel behemoth ArcelorMittal, experienced a sliding-down scenario for its EBITDA to more than halve to 56.4 percent for the financial year ending December 31, 2024. The same was mainly owing to a negative price-cost effect, largely brought about by steel prices in the country, given the high volume of imports coming from China.

The company bounced back well in the last quarter, with sales up 3% sequentially to $1.58 billion. Shipments also rose 13.3% at 2,138 kt. Revenues in the year stood at $6.52 billion, down by 2.9%.

According to ArcelorMittal’s CEO Aditya Mittal, bright long-term prospects in the sector are seen. Investment currently being undertaken includes a new high-quality electric arc furnace at AM/NS Calvert and an electric steel facility to feed into automotive demand.”.

Ahead, through 2025, the company projects that its growth is going to be stable to moderate in regions. It expects European demand for flat steel to rise from 0% to 2%, that in the US to increase between 1% to 3%, and for India, 6% to 7% on a flat note.

AM/NS India had received 14% of ArcelorMittal’s annual total capex at $1.3 billion which was geared towards its Andhra Pradesh renewables project. ArcelorMittal clarified that such an amount excluded further growth capital investments for its Indian unit.

AM/NS plans to fully commission its automotive downstream complex by the end of 2025 and increase crude steel production capacity from the current 9 million tonnes (Mt) to 15 Mt by 2026, with a long-term target of reaching 24 Mt by 2030.

The first expansion phase is expected to lift normalized EBITDA 2.5 times to $2.5 billion and investable cash flow to $1.7 billion, reinforcing the company’s commitment to strengthening its presence in India’s growing steel market.