ArcelorMittal said the new European Union import regime and a border carbon tax should boost domestic consumption and margins this year, while shipments to North America and selling prices will rise in the first quarter after the Mexico-related disruptions are eliminated, the company said during its fourth-quarter earnings report. Thursday, February 5th.
"We have spare production facilities in Europe that can be put into operation fairly quickly. The main feature is very clear: customer demand. We don't want to increase production capacity just like that, the key is to get a healthy and sustainable return on invested capital," said Aditya Mittal, Chief Executive Officer of ArcelorMittal, during a telephone conversation.
ArcelorMittal estimates that the EU Tariff Quota Instrument (TRQ), together with the Carbon Boundary Regulation Mechanism (CBAM), will reduce steel imports by about 10 million tons compared to 2024.
"About 8 million of[the 10-million-tonne reduction in imports to Europe]are flat rentals. We are already working on tools and bonuses in Poland and other countries, and we are well positioned to meet demand without incurring significant additional costs[capital expense]," said Kristino, Chief Financial Officer of Genuino, during a earnings call.
CBAM is an EU tool to limit carbon leakage by setting carbon costs for imported steel; from January 1, 2026, importers must provide CBAM certificates for embedded emissions, the cost of which is consistent with the EU Emissions Trading System (ETS) and adjusted to reference levels.
"In Europe, of course, we will also see an increase in supplies, which is somewhat related to seasonality. We will also see some price increases, but I would say that this is more of a second-order phenomenon for us," Kristino said, adding that the company's raw material costs and carbon dioxide emissions will increase as part of the CBAM.
In North America, Cristino reported that the operational problems in Mexico have been largely resolved, and noted an improvement in performance in the short term. "In the first quarter, we will see a recovery in volumes in North America. As we know, prices have been raised. Therefore, we will supply more goods at higher prices."
In late January, ArcelorMittal restored blast furnace operation at its Lazaro Cardenas steel plant in Michoacan, Mexico, after extensive downtime and maintenance.
. Elsewhere, Cristino described Brazil as "relatively stable." Shipments to Brazil increased due to an increase in slab exports, which was offset by a decrease in supply, while the company noted
