ArcelorMittal, ABB Tie Up to Cut Environmental Impact With XCarb Steel

Group 1: Collaboration and Sustainability - ArcelorMittal has partnered with ABB to introduce XCarb steel, which is produced using high quantities of recycled steel and 100% renewable energy, specifically for ABB's Kabeldon power distribution system [1] - The sustainable sourcing agreement has resulted in a 29% reduction in the carbon footprint of ABB's electrification equipment [1][2] - XCarb steel helps ABB achieve its sustainability goals by lowering the carbon impact of its products, with a production carbon footprint reduction of 60kg CO2e, or 29% for Kabeldon [2] Group 2: Production and Environmental Impact - ArcelorMittal's XCarb steel is produced in an electric arc furnace, utilizing at least 75% recycled steel and powered entirely by renewable electricity, emitting up to 70% less CO2e compared to conventionally manufactured steel [2] - The steel supplied to ABB includes Magnelis-coated steel for corrosion resistance and cold-rolled steel, manufactured and marketed in Europe [2] Group 3: Market Conditions and Future Outlook - ArcelorMittal's shares have increased by 6.2% over the past year, contrasting with a 2.3% decline in its industry [4] - The company believes current market conditions are unsustainable due to China's excess steel production, leading to low domestic steel spreads and aggressive exports [4] - ArcelorMittal anticipates higher apparent demand in the second half of 2024 compared to the previous year, projecting 2.5-3% growth in global steel consumption, excluding China, down from a prior estimate of 3-4% [4]