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ArcelorMittal Sees EU Tariffs Boosting Profits And Capacity Use
Steel

ArcelorMittal Sees EU Tariffs Boosting Profits And Capacity Use

ArcelorMittal SA said it expects earnings and capacity use in Europe to improve after the European Union proposed doubling tariffs to 50 per cent on steel imports above a reduced quota and its Carbon Border Adjustment Mechanism for emissions intensive goods was extended to certain downstream sectors. The company said the new import regime is due to come into force in July and will reduce pressure from cheap foreign steel. It added that rising protectionist measures in India, the United States and Latin America, along with moves by Beijing to tackle overcapacity in its one bn t a year steel sector, have eased earlier concerns about market flooding.

ArcelorMittal said the carbon levy and higher tariffs would enable European producers to recover to sustainable utilisation levels and to generate healthier returns on capital, according to the chief executive, Aditya Mittal. The group stated it was well positioned to benefit from the changed regulatory environment and intends to focus on running its facilities at higher capacity to regain market share from imports. The chief financial officer, Genuino Christino, said European capacity utilisation was running below 70 per cent and that import restrictions could lift utilisation to roughly 85 per cent.

The company reported fourth quarter earnings before interest, taxes, depreciation and amortisation of 1.59 bn dollars, marginally above analyst estimates, and its shares rose as much as 3.3 per cent in Amsterdam trading. ArcelorMittal said apparent steel demand outside China, a barometer of global economic activity, was expected to grow by two per cent in 2026. Management described the regulatory changes as likely to make continental steelmakers more efficient and profitable.

Analysts said higher tariffs and the carbon levy would support capacity utilisation and returns across the sector, while reducing incentives for relocation of manufacturing overseas. The company indicated that a tighter import regime would allow it to plan longer term for investment and output in Europe. It urged continued monitoring of policy implementation and market developments as the new rules take effect.

ArcelorMittal SA said it expects earnings and capacity use in Europe to improve after the European Union proposed doubling tariffs to 50 per cent on steel imports above a reduced quota and its Carbon Border Adjustment Mechanism for emissions intensive goods was extended to certain downstream sectors. The company said the new import regime is due to come into force in July and will reduce pressure from cheap foreign steel. It added that rising protectionist measures in India, the United States and Latin America, along with moves by Beijing to tackle overcapacity in its one bn t a year steel sector, have eased earlier concerns about market flooding. ArcelorMittal said the carbon levy and higher tariffs would enable European producers to recover to sustainable utilisation levels and to generate healthier returns on capital, according to the chief executive, Aditya Mittal. The group stated it was well positioned to benefit from the changed regulatory environment and intends to focus on running its facilities at higher capacity to regain market share from imports. The chief financial officer, Genuino Christino, said European capacity utilisation was running below 70 per cent and that import restrictions could lift utilisation to roughly 85 per cent. The company reported fourth quarter earnings before interest, taxes, depreciation and amortisation of 1.59 bn dollars, marginally above analyst estimates, and its shares rose as much as 3.3 per cent in Amsterdam trading. ArcelorMittal said apparent steel demand outside China, a barometer of global economic activity, was expected to grow by two per cent in 2026. Management described the regulatory changes as likely to make continental steelmakers more efficient and profitable. Analysts said higher tariffs and the carbon levy would support capacity utilisation and returns across the sector, while reducing incentives for relocation of manufacturing overseas. The company indicated that a tighter import regime would allow it to plan longer term for investment and output in Europe. It urged continued monitoring of policy implementation and market developments as the new rules take effect.

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