ArcelorMittal Stock

ArcelorMittal S.A. (ArcelorMittal) operates as an integrated steel and mining company worldwide.

ArcelorMittal is the largest steel producer in Europe and among the largest in the Americas, and a growing presence in Asia, including India through its joint venture AMNS India.

ArcelorMittal has steel-making operations in 15 countries, including 37 integrated and mini-mill steel-making facilities.

ArcelorMittal produces a broad range of high-quality finished and semi-finished steel products (‘semis’). Specifically, ArcelorMittal produces flat products, including sheet and plate, and long products, including bars, rods and structural shapes. It also produces pipes and tubes for various applications. ArcelorMittal sells its products primarily in local markets and to a diverse range of customers in approximately 140 countries, including the automotive, appliance, engineering, construction and machinery industries. ArcelorMittal’s mining operations produce various types of mining products including iron ore lump, fines, concentrate, pellets, sinter feed and coking coal.

As a global steel producer, the company is able to meet the needs of different markets. Steel consumption and product requirements clearly differ between developed markets and developing markets. Steel consumption in developed economies is weighted towards flat products and a higher value-added mix, while developing markets utilize a higher proportion of long products and commodity grades. To meet these diverse needs, the company maintains a high degree of product diversification and seeks opportunities to increase the proportion of higher value-added products in its product mix.

ArcelorMittal has a diversified portfolio of steel and mining products to meet a wide range of customer needs across many steel-consuming sectors, including automotive, appliance, engineering, construction, energy and machinery and via distributors.

The company has iron ore mining activities in Brazil, Bosnia, Canada, Liberia, Mexico, Ukraine, South Africa and through its joint venture in India and associate in Canada (Baffinland). On December 7, 2023, the company divested its mining operations in Kazakhstan in the context of the sale of ArcelorMittal Temirtau. ArcelorMittal’s main mining products include iron ore lump, fines, concentrate, pellets and sinter feed. In addition, ArcelorMittal produces substantial amounts of direct reduced iron (‘DRI’), which is a scrap substitute used in its mini-mill facilities to supplement external metallic purchases and also a vital material for the production of steel through the electric arc furnace (‘EAF’) route, which will grow substantially in the context of decarbonization.

On January 3, 2023 and March 10, 2023, ArcelorMittal completed the acquisition of Riwald Recycling (‘Riwald’), a ferrous scrap metal recycling business based in the Netherlands in the framework of its decarbonization strategy; and Italpannelli Germany, a German insulation panel manufacturer, which complements the existing geographic presence and strengthens the product portfolio of ArcelorMittal Downstream Solutions' construction business, respectively.

The company sells its products in local markets and through a centralized marketing organization to customers in approximately 140 countries.

In the automotive industry, ArcelorMittal mainly supplies the geographic markets where its production facilities are located, which are Europe, North and South America, South Africa and China through Valin ArcelorMittal Automotive Steel Co., Ltd (‘VAMA’), a joint venture with Hunan Valin. VAMA’s product mix is oriented toward higher value products and mainly toward the OEMs to which the company sells tailored solutions based on its products. With sales and service offices worldwide and production facilities in North and South America, South Africa, Europe, and China, ArcelorMittal is uniquely positioned to supply global automotive customers with the same products worldwide.

As of December 31, 2023, more than 50 different vehicles were designed by ArcelorMittal with the Door-Ring concept and approximately 100 projects are in progress.

In 2021, ArcelorMittal launched two solutions under the XCarb brand: XCarb green steel certificates and XCarb recycled and renewably produced (‘RRP’), which was well received in automotive industry and markets. The first XCarb RRP steels were successfully launched in Europe and in North America, exhibiting potential for reduction in CO2 emissions. In 2023, the company entered into an agreement with General Motors for supplying XCarb RRP steels in North America.

On December 22, 2023, ArcelorMittal announced that it had engaged dss+, a leading provider of sustainable operations management consulting services, to conduct a company-wide audit of its safety practices.

On April 18, 2023, ArcelorMittal announced that ArcelorMittal Brasil, would form the joint venture partnership Ventos de Santo Antonio Comercializadora de Energia S.A. (‘VdSA’) with Casa dos Ventos, one of Brazil’s largest developers and producers of renewable energy projects, to develop a 554 MW wind power project. ArcelorMittal Brasil holds a 55% stake in the joint venture, with Casa dos Ventos holding the remaining 45%. The transaction was approved by the Brazilian antitrust authority, CADE, on April 13 and was completed on May 5, 2023.

On November 15, 2023, ArcelorMittal and Schneider Electric, a leader in the digital transformation of energy management and automation, announced a partnership whereby ArcelorMittal will supply Schneider Electric with XCarb recycled and renewably produced steel for its electrical cabinets and enclosures. Produced at ArcelorMittal’s site in Sestao, Spain, XCarb recycled and renewably produced steel is made using a very high proportion of recycled steel in an electric arc furnace, powered with 100% renewable electricity.

On November 28, 2023, ArcelorMittal announced that ArcelorMittal Asturias had signed a contract with industrial engineering company Sarralle, to build a new electric EAF in Gijón, as part of the company’s decarbonization plan for Spain. Civil works on the site will start early 2024.

On January 16, 2024, ArcelorMittal established a partnership with Vestas, the energy industry’s global partner on sustainable energy solutions, to launch a low carbon-emissions steel offering that significantly reduces the lifetime carbon dioxide emissions from the production of wind turbine towers. The low carbon-emissions steel is produced using 100% steel scrap which is melted in an electric arc furnace powered by 100% wind energy at the ArcelorMittal steel mill, Industeel Charleroi, in Belgium. The steel slabs are then transformed into heavy plates used for the manufacture of wind turbine towers, at ArcelorMittal’s heavy plate mill in Gijón, Spain. These heavy plates, made with XCarb recycled and renewably produced heavy plate steel, are initially suitable for the entire onshore wind turbine towers and the top section of offshore wind turbine towers.

On January 3, 2024, ArcelorMittal established a partnership with the Indian Institute of Technology Madras (‘IIT Madras’) and was working with IIT Madras’ Hyperloop Technology teams - Avishkar Hyperloop, student team and TuTr Hyperloop, a start-up incubated at IIT Madras, which are developing Hyperloop technologies for passenger and cargo mobility at scale.

Products

ArcelorMittal has a high degree of product diversification relative to other steel companies. Its plants manufacture a broad range of finished and semi-finished steel products with different specifications, including many complex and highly technical and sophisticated products that it sells to demanding customers for use in high-end applications.

ArcelorMittal’s principal steel products include semi-finished flat products, such as slabs; finished flat products, such as plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products, such as bars, wire-rods, structural sections, rails, sheet piles and wire-products; and seamless and welded pipes and tubes.

ArcelorMittal’s main mining products include iron ore lump, fines, concentrate, pellets and sinter feed.

Mining Products

ArcelorMittal’s principal mining products for steel operations include iron ore and metallurgical coal (on December 7, 2023, ArcelorMittal divested its coal operations following the sale of ArcelorMittal Temirtau).

ArcelorMittal’s priority is to optimize output and production from its existing sources focused mainly on iron ore.

ArcelorMittal is a party to contracts with other mining companies that provide long-term, stable sources of raw materials. The company plans to extend its largest iron ore supply contracts with Vale (which expires in 2024) to cover its requirements for the EU units and for its Tubarao steelmill (ArcelorMittal Pecém, ArcelorMittal Brasil, being covered by a specific long-term agreement). ArcelorMittal's principal international iron ore suppliers include Vale in Brazil, Luossavaara-Kirunavaara AB in Sweden, Baffinland Iron Mines Corporation (‘BIM’) in Canada, IOC (Rio Tinto Ltd.) in Canada, Samarco in Brazi, Anglo-American (Sishen in South Africa and Minas Rio in Brazil), Metinvest in Ukraine.

ArcelorMittal’s principal coal suppliers include the BHP Billiton Mitsubishi Alliance (‘BMA’), Anglo Coal, Peabody, Glencore in Australia, Contura and Warrior in the United States, Teck Coal in Canada, and JSW in Poland.

Iron Ore

ArcelorMittal sources significant portions of its iron ore needs from its own mines in Ukraine, Bosnia, Canada, Mexico, Liberia and Brazil, and, before the sale of ArcelorMittal Temirtau on December 7, 2023, in Kazakhstan. Several of ArcelorMittal’s steel plants also have in place off-take arrangements with suppliers located near its production facilities.

Metallurgical Coal

As with iron ore, prior to sale of ArcelorMittal Temirtau on December 7, 2023, ArcelorMittal sourced a percentage of its metallurgical coal from its own coal mines in Kazakhstan. The company’s mines in Kazakhstan supplied substantially all of the requirements for the steelmaking operations at ArcelorMittal Temirtau.

Other raw materials and energy

Metallics (scrap)

ArcelorMittal procures the majority of its scrap requirements locally and regionally, optimizing transport costs. Typically, scrap purchases are made in the spot market on a monthly/weekly basis or with short-term contracts.

Alloys

ArcelorMittal purchases its requirements of bulk and noble alloys from a number of global, regional and local suppliers on contracts that are linked to generally-accepted indices or negotiated on a quarterly basis.

Base Metals

The majority of the company’s base metal needs, including zinc, tin, aluminum and nickel are purchased under annual volume contracts.

Electricity

ArcelorMittal generally procures its electricity through tariff-based systems in regulated areas such as parts of the United States and South Africa, through direct access to markets in most of its European mills or through bilateral contracts elsewhere. The duration of these contracts varies significantly depending on the area and type of arrangement.

For integrated steel mills, plant off-gases from various process steps are utilized to generate a significant portion of the plant’s electricity requirements and lower the purchase volumes from the grid. This is either produced by the plant itself or with a partner in the form of a co-generation contract.

Natural Gas

ArcelorMittal procures much of its natural gas requirements for its Canadian and Mexican operations from the natural gas spot market or through short-term contracts entered into with local suppliers, with prices fixed either by contract or tariff-based spot market prices. For its European and Ukrainian operations, with a contractual mix of ‘all-in’ bilateral supply and direct access to the market, ArcelorMittal sources its natural gas requirements under the prevailing mix of oil-based pricing systems or European short term/spot-indexed supply contracts. The remainder of ArcelorMittal’s natural gas consumption is generally sourced from regulated markets.

Industrial Gases

Most of ArcelorMittal’s industrial gas requirements are produced and supplied under long-term contracts with various suppliers in different geographical regions.

Coke

ArcelorMittal has its own coke-making facilities at most of its integrated mill sites, including in Bosnia, Canada, Mexico, Brazil, Spain, France, Germany, Belgium, Poland, South Africa and Ukraine. While ArcelorMittal meets most of its own coke requirements, certain of ArcelorMittal’s operating subsidiaries buy coke from mostly domestic or regional sources to optimize cost savings from transport efficiencies, and certain of its subsidiaries occasionally sell excess coke at market prices to third parties. The remainder of the spot purchases of coke are sourced from China, the U.S., Japan, Australia and Colombia.

Shipping

ArcelorMittal Shipping (‘AM Shipping’) provides ocean transportation solutions to ArcelorMittal’s manufacturing subsidiaries and affiliates. AM Shipping determines cost-efficient and timely approaches for the transport of raw materials, such as iron ore, coal, coke and scrap, and semi-finished and finished products. AM Shipping is also responsible for providing shipping services to the company’s sales organizations. It provides complete logistics solutions from plants to customer locations using various modes of transport.

In 2023, AM Shipping arranged transportation for approximately 49.19 million tonnes of raw materials and about 7.31 million tonnes of finished products. AM Shipping also acts as the coordinator for Global Chartering Ltd., the company's joint venture with DryLog Ltd., a Monaco based shipping company.

Sales and Marketing

In 2023, ArcelorMittal sold 55.6 million tonnes of steel products.

Sales

The majority of steel sales from ArcelorMittal are destined for domestic markets. In the EU and in South America, ArcelorMittal owns a large number of service and distribution centers. Depending on the level of complexity of the product, or the level of service required by the customer, the service center operations form an integral part of the supply chain to ArcelorMittal’s customers. Distribution centers provide access to ArcelorMittal’s products to smaller customers that cannot or do not want to buy directly from the operating facility.

The company prefers to sell exports through its international network of sales agencies to ensure that all ArcelorMittal products are presented to the market in a cost-efficient and coordinated manner.

For some global industries with customers in more than one of the geographical areas that ArcelorMittal serves, the company has established customized sales and service functions. This is particularly the case for the automotive industry.

Marketing

An important part of the marketing function at ArcelorMittal is to develop short-range outlooks that provide future perspectives on the state of market demand and supply.

Intellectual Property

The company’s patent portfolio includes more than 12,870 patents and patent applications, mostly recent and medium-term, for more than 831 patent families, with 103 inventions newly-protected in 2023.

Segments

ArcelorMittal reports its business in the following five reportable segments corresponding to continuing activities: NAFTA, Brazil, Europe, ACIS and Mining.

As from April 1, 2021, ArcelorMittal implemented changes to its organizational structure whereby primary responsibility for captive mining operations whose output is mainly consumed by their respective steel segments was transferred to such segments. The Mining segment retains primary responsibility for the operation of the seaborne oriented operations at AMMC and ArcelorMittal Liberia Ltd, and will continue to provide technical support to all mining operations within the company. Only the seaborne-oriented operations of AMMC and ArcelorMittal Liberia Ltd are reported within the Mining segment. The results of all other mines are accounted for within the steel segment that they primarily supply.

NAFTA produces flat, long and tubular products. Flat products include slabs, hot rolled coil, cold rolled coil, coated steel products and plate and are sold primarily to customers in the following sectors: automotive, energy, construction packaging and appliances and via distributors and processors. Flat product facilities are located at two integrated and mini-mill sites located in two countries. Long products include wire rod, sections, rebar, billets, blooms and wire drawing. Long production facilities are located at two integrated and mini-mill sites located in two countries. In 2023, shipments from NAFTA totaled 10.6 million tonnes. The raw material supply of the NAFTA operations includes sourcing from iron ore captive mines in Mexico to supply the steel facilities.

Brazil produces flat, long and tubular products. Flat products include slabs, hot rolled coil, cold rolled coil and coated steel. Long products comprise sections, wire rod, bar and rebars, billets and wire drawing. In 2023, shipments from Brazil totaled 13.7 million tonnes. The raw material supply of the Brazil operations includes sourcing from iron ore captive mines in Brazil.

Europe produces flat, long and tubular products. Flat products include hot rolled coil, cold rolled coil, coated products, tinplate, plate and slab. These products are sold primarily to customers in the automotive, general industry and packaging sectors. Flat product facilities are located at 11 integrated and mini-mill sites located in five countries. Long products include sections, wire rod, rebar, billets, blooms and wire drawing. Long product facilities are located at 10 integrated and mini-mill sites in seven countries. In addition, Europe includes downstream solutions, which provides primarily distribution of long and flat products, as well as value-added and customized steel solutions through further processing to meet specific customer requirements. In 2023, shipments from Europe totaled 28.1 million tonnes. The raw material supply of Europe operations includes sourcing from iron ore captive mines in Bosnia & Herzegovina.

ACIS produces a combination of flat, long and tubular products. It has five flat and long production facilities in three countries. In 2023, shipments from ACIS totaled 6.0 million tonnes, with shipments made on a worldwide basis. The raw material supply of the ACIS operations includes sourcing from iron ore captive mines in Kazakhstan and Ukraine, and coal captive mines in Kazakhstan. On December 7, 2023, ArcelorMittal completed the sale of its steel and mining operations in Kazakhstan. As a result of this transaction, as of December 31, 2023, the ACIS segment had four flat and long production facilities in two countries, South Africa and Ukraine.

Mining provides the company's steel operations with high quality and low-cost iron ore reserves and also sells mineral products to third parties. Mining segment iron ore mines are located in North America and Africa. In 2023, iron ore production in the mining segment totaled approximately 26.0 million tonnes.

As from January 1, 2024, ArcelorMittal implemented changes to its organizational structure. India and joint ventures will be reported as a new operating segment, including the joint ventures AMNS India, VAMA and Calvert, as well as other associates, joint ventures and other investments. The segment Sustainable Solutions will be composed of a number of high-growth, niche, capital light businesses playing an important role in supporting climate action (including renewables, special projects and construction business). They are reported within the Europe segment and will be reported as a separate operating segment. The NAFTA segment will be renamed North America. Finally, following the sale of the company’s operations in Kazakhstan, the remaining parts of the former ACIS segment will be assigned to Others. These changes will be presented with the earnings release for the first quarter of 2024.

Business Strategy

ArcelorMittal's strategy is to leverage four distinctive attributes in aiming to capture leading positions in the most attractive areas of the steel industry value chain, from mining at one end to distribution and first-stage processing at the other: global scale and scope; unmatched technical capabilities; and diverse portfolio of steel and related businesses, particularly mining.

Research and Development

In 2022, the company’s research and development expense included $286 million.

History

ArcelorMittal S.A. was founded in 1976.