ArcelorMittal (MT) Advances Green Steel With Gijon EAF Project

Group 1: Investment and Decarbonization Efforts - ArcelorMittal has begun construction of an electric arc furnace (EAF) for long products at its Gijon plant, with an investment of €213 million (approximately $230 million), marking a significant step in the European decarbonization program [1] - The new EAF process will reduce CO2 emissions by over 35%, potentially achieving a reduction of 1 million tons of CO2 equivalent annually once fully operational [1] - This project positions the Long Products division in Asturias as a leader in European decarbonization efforts and is the first major investment under ArcelorMittal's decarbonization strategy in Europe [2] Group 2: Production and Market Demand - The advanced EAF technology will enable the production of high-value rails and wire rods, catering to sectors such as automotive, construction, and rail infrastructure, which have strict carbon criteria [2] - ArcelorMittal anticipates a rebound in apparent demand in 2024 due to low inventory levels in Europe, projecting global steel consumption growth (excluding China) of 3-4% [3] - The company expects increases in steel consumption of 1.5-3.5% in the United States, 2-4% in Europe, 0.5-2.5% in Brazil, and 6.5-8.5% in India [3] Group 3: Financial Outlook and Capital Expenditure - ArcelorMittal plans capital expenditures of $4.5-$5 billion for the year, with $1.4-$1.5 billion allocated to strategic growth projects [3] - The company remains optimistic about medium to long-term steel demand prospects and is committed to providing shareholder returns [3]