Despite reporting a significantly narrowed annual loss, ArcelorMital SA’s share price closed 14.56% lower on Thursday, its biggest one-day fall since July 30 2020.
The steelmaker expects that strong steel prices and demand, paired with cost cuts, will see its improved performance continue into 2021. Among measures taken to restructure the business it has mothballed its Saldanha steel mill, cut 1,700 jobs, and diversified the supply of raw materials to achieve price flexibility.
ArcelorMittal saw liquid steel production drop 48% in 2020 to 2.3-million tonnes. The production capacity is, however, 5.5-million tonnes. “To the extent that there is a market … we can grow volumes without substantial growth in the fixed-costs base of the company. So I think from that perspective we have turned a corner and are well-placed for the future — that notwithstanding, we have to continue to drive cost efficiencies.