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ArcelorMittal (MT) & John Cockerill Team Up for Volteron Plant
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ArcelorMittal SA (MT - Free Report) and John Cockerill plan to build the Volteron plant, which is said to be the world's first industrial-scale, low-temperature iron electrolysis facility. This plant will utilize an electrochemical process to convert iron oxide into iron plates using a carbon-free and cold direct electrolysis process powered by electricity. The successful pilot-scale testing of this process using standard iron ore has demonstrated high efficiency.
In the initial phase of production, the Volteron plant is expected to manufacture between 40,000 and 80,000 tons of iron plates per year, with production slated to commence in 2027. Once the technology has been proven at this scale, there are plans to expand the plant's annual capacity to 300,000 to 1 million tons.
The iron plates produced through the Volteron process will be processed into steel using an electric arc furnace. This innovative approach aims to reduce carbon emissions and improve the sustainability of the steel manufacturing process by employing clean energy sources and advanced electrochemical techniques.
The project received public funding through EU's Horizon 2020 program. Alongside ArcelorMittal and John Cockerill, several partners have been involved in the project, including EDF, Tecnalia, Quantis, University of Aveiro, National Technical University of Athens, Norwegian University of Science and Technology, Dynergie, Recoy, CFD Numerics, and Mytilineos. However, in this next phase, ArcelorMittal and John Cockerill will continue as exclusive partners to further develop and implement the technology.
ArcelorMittal has gained 1.4% in the past year, compared with the industry’s 25% rise in the same period.
Image Source: Zacks Investment Research
ArcelorMittal is also pursuing two other pathways, Smart Carbon and Innovative-DRI, to achieve net-zero steelmaking and reduce the environmental impact of steel production.
The Smart Carbon pathway involves modifying blast furnace processes by incorporating clean energy sources and carbon capture technologies. This enables the utilization of renewable energy and the capture and storage of carbon dioxide emissions. The Innovative-DRI pathway aims to use hydrogen instead of fossil fuels to produce direct reduced iron, a key intermediate product in steelmaking.
The company, on its first-quarter call, said that it sees world apparent steel consumption, excluding China, to rise 2-3% year over year in 2023. ArcelorMittal also expects its steel shipments to grow roughly 5% in 2023.
The Zacks Consensus Estimate for MT’s 2023 earnings is $4.50, implying a decline of 61.3% from the previous year. The consensus estimates for second-quarter earnings of $1.38 suggests a decline of 67.5% year over year.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings has been pegged at 53 cents per share, indicating year-over-year growth of 112.5%. The company’s shares have gained around 7.9% over the past year. FSTR beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 140.5%, on average
The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It delivered a trailing four-quarter earnings surprise of roughly 13.64%, on average. Shares of KOP have gained 33.7% in a year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 4.4% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 6.9%. The company’s shares have gained 24.8% in the past year.
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ArcelorMittal (MT) & John Cockerill Team Up for Volteron Plant
ArcelorMittal SA (MT - Free Report) and John Cockerill plan to build the Volteron plant, which is said to be the world's first industrial-scale, low-temperature iron electrolysis facility. This plant will utilize an electrochemical process to convert iron oxide into iron plates using a carbon-free and cold direct electrolysis process powered by electricity. The successful pilot-scale testing of this process using standard iron ore has demonstrated high efficiency.
In the initial phase of production, the Volteron plant is expected to manufacture between 40,000 and 80,000 tons of iron plates per year, with production slated to commence in 2027. Once the technology has been proven at this scale, there are plans to expand the plant's annual capacity to 300,000 to 1 million tons.
The iron plates produced through the Volteron process will be processed into steel using an electric arc furnace. This innovative approach aims to reduce carbon emissions and improve the sustainability of the steel manufacturing process by employing clean energy sources and advanced electrochemical techniques.
The project received public funding through EU's Horizon 2020 program. Alongside ArcelorMittal and John Cockerill, several partners have been involved in the project, including EDF, Tecnalia, Quantis, University of Aveiro, National Technical University of Athens, Norwegian University of Science and Technology, Dynergie, Recoy, CFD Numerics, and Mytilineos. However, in this next phase, ArcelorMittal and John Cockerill will continue as exclusive partners to further develop and implement the technology.
ArcelorMittal has gained 1.4% in the past year, compared with the industry’s 25% rise in the same period.
Image Source: Zacks Investment Research
ArcelorMittal is also pursuing two other pathways, Smart Carbon and Innovative-DRI, to achieve net-zero steelmaking and reduce the environmental impact of steel production.
The Smart Carbon pathway involves modifying blast furnace processes by incorporating clean energy sources and carbon capture technologies. This enables the utilization of renewable energy and the capture and storage of carbon dioxide emissions. The Innovative-DRI pathway aims to use hydrogen instead of fossil fuels to produce direct reduced iron, a key intermediate product in steelmaking.
The company, on its first-quarter call, said that it sees world apparent steel consumption, excluding China, to rise 2-3% year over year in 2023. ArcelorMittal also expects its steel shipments to grow roughly 5% in 2023.
The Zacks Consensus Estimate for MT’s 2023 earnings is $4.50, implying a decline of 61.3% from the previous year. The consensus estimates for second-quarter earnings of $1.38 suggests a decline of 67.5% year over year.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include L.B. Foster Company (FSTR - Free Report) , carrying a Zacks Rank #1 (Strong Buy), and Koppers Holdings Inc. (KOP - Free Report) and Linde Plc (LIN - Free Report) , carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for L.B. Foster’s current-year earnings has been pegged at 53 cents per share, indicating year-over-year growth of 112.5%. The company’s shares have gained around 7.9% over the past year. FSTR beat the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 140.5%, on average
The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It delivered a trailing four-quarter earnings surprise of roughly 13.64%, on average. Shares of KOP have gained 33.7% in a year.
The Zacks Consensus Estimate for Linde’s current-year earnings has been revised 4.4% upward in the past 60 days. LIN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 6.9%. The company’s shares have gained 24.8% in the past year.