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ArcelorMittal (MT) to Restart Bosnia Plant After Two-Month Halt
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ArcelorMittal S.A. (MT - Free Report) is set to recommence operations at its Bosnia plant in the coming days, according to Reuters. The production had been halted in November due to a decline in steel demand across Europe. The company also cited factors such as reduced steel consumption since 2022, triggered by the war in Ukraine, escalating energy prices, output costs and inflation, as reported by Reuters. The ArcelorMittal Zenica plant will also resume receiving iron ore deliveries from its mines in northern Bosnia.
Following a two-month strike, the trade union leader at ArcelorMittal Zenica reported that two key operations, including a blast furnace, are scheduled to restart soon. This information was corroborated by BHT state television and a company source. The Zenica plant, Bosnia's largest exporter in the previous year, produces approximately 700,000 tons of liquid steel annually and employs around 2,200 workers.
The decision to suspend production in November was driven by a sustained decline in European steel consumption, which deteriorated significantly in the back half of 2023. Consequently, deliveries from the Omarska iron ore mines in northern Bosnia, employing about 850 workers, were also halted, as these mines depend on sales to the Zenica plant.
Government officials and trade unions expressed concerns about the potential negative impact on Bosnia's economy, particularly the transport sector if the suspension of output at the steel plant and ore mines were to be prolonged.
Shares of ArcelorMittal have lost 11.7% in the past year compared with an 11% rise of the industry.
Image Source: Zacks Investment Research
ArcelorMittal, in its third-quarter call, stated that it expects global apparent steel consumption (excluding China) to rise 1-2% in 2023 on a year-over-year basis. The company maintains a positive outlook on the medium to long-term demand for steel, supported by its strong financial position.
Cameco has a projected earnings growth rate of 156% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 6.7% in the past 60 days. The stock is up around 76.2% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.96, indicating a year-over-year surge of 247.4%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 52.3% in the past year.
The Zacks Consensus Estimate for CBT’s current-year earnings has been revised upward by 4.4% in the past 60 days. CBT beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 2.3%, on average. The stock has gained around 5.5% in a year.
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ArcelorMittal (MT) to Restart Bosnia Plant After Two-Month Halt
ArcelorMittal S.A. (MT - Free Report) is set to recommence operations at its Bosnia plant in the coming days, according to Reuters. The production had been halted in November due to a decline in steel demand across Europe. The company also cited factors such as reduced steel consumption since 2022, triggered by the war in Ukraine, escalating energy prices, output costs and inflation, as reported by Reuters. The ArcelorMittal Zenica plant will also resume receiving iron ore deliveries from its mines in northern Bosnia.
Following a two-month strike, the trade union leader at ArcelorMittal Zenica reported that two key operations, including a blast furnace, are scheduled to restart soon. This information was corroborated by BHT state television and a company source. The Zenica plant, Bosnia's largest exporter in the previous year, produces approximately 700,000 tons of liquid steel annually and employs around 2,200 workers.
The decision to suspend production in November was driven by a sustained decline in European steel consumption, which deteriorated significantly in the back half of 2023. Consequently, deliveries from the Omarska iron ore mines in northern Bosnia, employing about 850 workers, were also halted, as these mines depend on sales to the Zenica plant.
Government officials and trade unions expressed concerns about the potential negative impact on Bosnia's economy, particularly the transport sector if the suspension of output at the steel plant and ore mines were to be prolonged.
Shares of ArcelorMittal have lost 11.7% in the past year compared with an 11% rise of the industry.
Image Source: Zacks Investment Research
ArcelorMittal, in its third-quarter call, stated that it expects global apparent steel consumption (excluding China) to rise 1-2% in 2023 on a year-over-year basis. The company maintains a positive outlook on the medium to long-term demand for steel, supported by its strong financial position.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Cameco Corporation (CCJ - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) and Cabot Corporation (CBT - Free Report) , currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 156% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 6.7% in the past 60 days. The stock is up around 76.2% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.96, indicating a year-over-year surge of 247.4%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 52.3% in the past year.
The Zacks Consensus Estimate for CBT’s current-year earnings has been revised upward by 4.4% in the past 60 days. CBT beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 2.3%, on average. The stock has gained around 5.5% in a year.