ArcelorMittal’s Q1 mining earnings rise on high raw materials prices, tighter supply

Earnings at ArcelorMittal’s mining subdivision for the first quarter of 2019 rose by 20.3% year-on-year amid “rising raw material costs as a result of supply-side developments in Brazil,” the company said late on Thursday May 9.

Fastmarkets’ 62% Fe iron ore index averaged $82.41 per tonne cfr Qingdao over the first quarter of 2019, compared with $74.39 per tonne cfr in the first three months of 2018. “The [iron ore] price level at which the mining business is free cash flow break-even (FCF) remains at $40 per tonne China cfr 62% Fe,” ArcelorMittal said. The index was $97.24 per tonne on May 10, up from $74.69 per tonne on January 25, when a tailings dam at Brazilian miner Vale’s Córrego do Feijjão mine ruptured, with consequences that included a tightening of the global iron ore supply. The mining subdivision’s earnings before interest, taxes, depreciation...

Published

Viral Shah

May 10, 2019

14:25 GMT

London