Saturday, May 10, 2014

Seeking Alpha: ArcelorMittal Looks To Ride Recovering Steel Demand Back Into The High Teens

As the world's largest steel producer, however steel markets go so goes ArcelorMittal (MT). That does not mean that the company cannot, or has not, make meaningful cost improvements and/or reposition production to take advantage of particular market opportunities, but ArcelorMittal is more leveraged to an overall European and North American steel recovery than more focused/specialized companies like Voestalpine (OTCPK:VLPNY) or Acerinox (OTCPK:ANIOY).

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ArcelorMittal Looks To Ride Recovering Steel Demand Back Into The High Teens

4 comments:

Little Brother said...

Hi Stephen,
I really enjoyed this article when it came out.
Any thoughts on the past quarter? Do you think the headwinds caused by iron ore pricing are enough to justify the EV/EBITDA discount as compared to steel companies such as AKS and X?
Thanks

Little Brother said...

Hi Stephen,
I really enjoyed this article when it came out.
Any thoughts on the past quarter? Do you think the headwinds caused by iron ore pricing are enough to justify the EV/EBITDA discount as compared to steel companies such as AKS and X?
Thanks

Stephen Simpson, CFA said...

I'm hoping to update over the next week or two, so look for that...

I don't think the discount is justified, though I'm not surprised to see it - by virtue of the inferiority of their operations, AKS and X arguably have more positive leverage to an upturn in steel.

Little Brother said...

Thanks for such a quick reply, Stephen.
Looking forward to the article when/if you get a chance to write it.