ArcelorMittal: EU Steel Tariffs Can't Halt Plummeting Prices
09 Mayo 2019 - 2:57AM
Noticias Dow Jones
By Nathan Allen
ArcelorMittal (MT.AE) on Thursday blamed lower first-quarter
earnings on a sharp decline in global steel prices, a trend that
was particularly pronounced in Europe, where a series of tariffs
have failed to stem the flow of cheap imports.
"We continue to face a challenge from high levels of imports,
particularly in Europe, where safeguard measures introduced by the
European Commission have not been fully effective," Chief Executive
Lakshmi Mittal said.
In January the EU agreed to a series of measures aimed at
curbing imports after the introduction of tariffs in the U.S.
diverted large volumes of the metal into Europe.
The commission imposed quotas on 26 product categories and a 25%
duty on imports exceeding those quotas.
However, ArcelorMittal has argued that the measures don't go far
enough to protect local producers, and recently committed to
temporary production cuts in the region, which it said were
necessary to adapt to the current market environment.
"It is important there is a level playing field to address
unfair competition, and this includes a green border adjustment to
ensure that imports into Europe face the same carbon costs as
producers in Europe," Mr. Mittal said.
While ArcelorMittal's quarterly steel production in the region
increased 10% on-year to 12.4 million metric tons--largely as a
result of its takeover of Italy's giant Ilva mill--operating income
dropped to $11 million from $580 million over the same period.
Average selling prices in Europe fell 9% on year to $541 a ton,
the company said, compared with a 6.4% drop in Brazil and a 12%
gain in the NAFTA region over the same period.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
May 09, 2019 03:42 ET (07:42 GMT)
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