ArcelorMittal S.A. MT has collaborated with ABB to introduce XCarb steel, made using high quantities of recycled steel and 100% renewable energy, for ABB’s dependable Kabeldon power distribution system. The sustainable sourcing agreement reduces the carbon footprint of crucial electrification equipment by 29%. ArcelorMittal's XCarb helps ABB fulfill its sustainability goals by lowering the carbon impact of its products. 

Customers have relied on Kabeldon power distribution systems for decades to offer dependable and safe electricity. Kabeldon is now available with XCarb steel, which will help them lower the environmental impact of their power infrastructure. 

Low-carbon steel is an essential aspect of ABB's sustainable sourcing strategy and will be a focus of the ABB Smart Power division's portfolio for the next two years. ABB is committed to incorporating 80% of ABB products and solutions with its Circularity Approach by 2030. The usage of XCarb steel has reduced Kabeldon's production carbon footprint by 60kg CO2e, or 29%. 

ArcelorMittal's XCarb recycled and renewable steel is produced in an electric arc furnace utilizing at least 75% recycled steel and powered entirely by renewable electricity. The final material emits up to 70% less CO2e than conventionally manufactured steel. Steel supplied to ABB, including Magnelis-coated steel for corrosion resistance and cold-rolled steel, is manufactured and marketed in Europe.

Shares of ArcelorMittal have gained 6.2% over the past year against a 2.3% decline of its industry.

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MT, on its second-quarter call, said that it believes that the current market conditions are not sustainable due to China's excess steel production relative to demand, which resulted in very low domestic steel spreads and aggressive exports. Europe and the United States are experiencing steel prices below the marginal cost. Nevertheless, the company anticipates higher apparent demand in the second half of 2024 than the year-ago period, which was affected by destocking, especially in Europe. 

With absolute inventory levels remaining low in Europe, the company is optimistic about the potential for restocking activity as real demand begins to recover. MT now projects 2.5-3% growth in global steel consumption, excluding China, in 2024, compared with its prior view of 3-4% growth.

MT’s Rank & Key Picks

MT currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and Centrus Energy Corp. LEU. 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 154.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 51 cents, indicating a year-over-year rise of 466.7%. The Zacks Consensus Estimate for IAG's current-year earnings has been going up in the past 30 days. IAG, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 200%. The company's shares have rallied roughly 143% in the past year.

The Zacks Consensus Estimate for Centrus’ current-year earnings is pegged at $3.06 per share. LEU, a Zacks Rank #1 stock, beat the consensus estimate in three of the last four quarters while missed once, with the average earnings surprise being 107.1%. LEU has rallied around 71.7% in the past year.

 

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