ArcelorMittal Nippon Steel (AM/NS) India produced 1.76mn mt crude steel in Q3 and an annualized run rate of 7.1mn mt. Crude steel production recovered to pre-COVID level and was up by 46pc from the company’s Q2 output. The recovery was supported by increased exports since June.
The company is focusing on the domestic market as steel demand has gradually improved in India supported by the government stimulus. All sites are running at near-full capacity.
Financial performance of AM/NS improved in Q3 due to its competitive cost base. The company’s Q3 EBITDA rose by 64pc to $176mn from Q2 and up 25.7pc from Q1. For the nine months (Jan-Sep), AM/NS’ EBITDA stood at $423mn. Despite difficult market condition in Q2, the company benefitted from pellet exports and reduced costs.
AM/NS is financially stable and has access to low-cost financing. The company’s cash needs are less than $250mn per year and it is in a position to fund its own growth projects.