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
Hi Stephen,
ReplyDeleteI 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
Hi Stephen,
ReplyDeleteI 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
I'm hoping to update over the next week or two, so look for that...
ReplyDeleteI 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.
Thanks for such a quick reply, Stephen.
ReplyDeleteLooking forward to the article when/if you get a chance to write it.