Why Investors Shouldn’t Fret over MT’s Negative Free Cash Flow
In this article, we’ll look at ArcelorMittal’s 1Q17 cash flow and leverage positions. As of the end of 1Q17, ArcelorMittal had net debt of $12.1 billion.
What to Make of ArcelorMittal’s 1Q17 Performance
ArcelorMittal’s 1Q17 operating income rose sharply in 1Q17 compared to 4Q16. There are several other metrics we can look at to assess a company’s financial performance.
What to Expect from European Markets in 2017
Stock prices across European markets (VGK) (HEZU) rose on February 21, 2017, and business activity in the Eurozone reached a six-year high.
Will China’s Capacity Cuts Be Enough to Restore Global Balance?
China plans to curtail its excess steel capacity. However, even if China actually cuts the excess steel capacity, it could be in a very gradual way.
No Early Respite for US Steel Producers as Prices Tank Globally
Chinese steel prices have continued to slide in November. Chinese steel mills lost $35 per ton on average in 3Q15.
Will U.S. Steel Be Able to Deliver Positive EBITDA in 2016?
U.S. Steel cut its EBITDA guidance three times in the current year. During the earnings conference call, it gave an EBITDA guidance of $1.2–$1.4 billion for 2015.
ArcelorMittal’s Revenue and Income Fell in 3Q15
ArcelorMittal’s YTD price movement has been falling quarter-over-quarter in 2015. After the 3Q15 earnings report, the company fell by 0.55% to close at $5.43 per share.
Indicators Point to Strengthening US Steel Demand
Steel demand is dependent on the fortunes of its end users, and the construction sector is the biggest steel consumer in the United States.
May Housing Starts Rise Year-over-Year but Dip 11% in April
Housing starts are a leading indicator of residential construction activity. Housing starts in May increased 4.6% on a year-over-year basis. However, compared to April, they dipped 11.1%.
Construction Spending Hits the Highest Level since November 2008
The construction sector accounts for more than 40% of total steel consumption in the US. In April, construction spending increased 2.2% over the previous month.
Not Much Cheer from China’s April Steel Production Figures
Chinese steel production declined 0.7% in April on a year-over-year (or YoY) basis.
China’s Official PMI Holds above 50 for 2 Consecutive Months
While China’s official PMI held above 50 for two consecutive months, the PMI figures released by HSBC Markit paint a grim picture of China’s economy.