- ArcelorMittal (MT +1.5%) says it is "absolutely critical" that Europe protect itself with measures to restrict imports of steel and remedy weaknesses in its existing system.
- The European Union imposed provisional safeguards in July combining quotas and tariffs to counter steel flooding into the market after Pres. Trump hit U.S. steel imports with 25% tariffs; the provisional measures are in place for 200 days, meaning they would expire in early February unless they are replaced by a longer-term system.
- MT says the weaknesses include exemptions for developing countries, which for example has allowed Turkey to export more steel to Europe, as well as the exemption for tonnage of steel already on ships.
- The steelmaker sees the industry's ultimate problem as overcapacity in China: "It begins with China and ends with China," CEO Aditya Mittal tells a company presentation in Paris. "China created tremendous global overcapacity and subsidized its steel business and sought to solve that problem by exporting around the world."
- Also, MT says Europe's demand for construction steel is down nearly 20% from its pre-financial crisis peak, with the market still coping with excess capacity.
- ETF: SLX
- Now read: Is It Time To Pick Up ArcelorMittal Again?
Original article