Why We’re Revising Our Price Estimate For ArcelorMittal To $5
We are raising our price estimate for ArcelorMittal to $4.93, which is primarily driven by an improvement in the prospects of the company’s NAFTA division. The fortunes of the NAFTA division have improved with the imposition of anti-dumping duties by the U.S. Department Of Commerce (DOC) on steel imports to the U.S. from a number of countries that are suspected of exporting steel below market prices, including China. Though the DOC’s preliminary ruling still needs to be confirmed in a final ruling by the U.S. International Trade Commission (USITC), these regulatory measures have already taken effect with an increase in steel prices in the U.S. and a reduction in the share of imported steels in domestic steel shipments. With regulatory measures taking effect, the NAFTA division will benefit from robust demand for steel in the U.S., with demand expected to grow by 3.2% and 2.7% in the U.S. in 2016 and 2017, respectively, after a contraction in demand in 2015. The impact of these factors is reflected in our revised shipment and pricing forecasts for the NAFTA division.
Have more questions about ArcelorMittal? See the links below.
- What Is ArcelorMittal’s Revenue And EBITDA Breakdown?
- What Is ArcelorMittal’s Fundamental Value Based On 2015 Results?
- By What Percentage Did ArcelorMittal’s Revenue & EBITDA Change In The Last 4 Years?
- How Has ArcelorMittal’s Revenue Composition Changed Over The Last 4 Years?
- By What Percentage Can ArcelorMittal’s Revenue & EBITDA Grow In The Next 3 Years?
- How Will ArcelorMittal’s Revenue Composition Change by 2020?
- ArcelorMittal: A Look Back At The Year 2015
- With Steel Facing Competition From Aluminum In Automotive Applications, By What Percentage Will ArcelorMittal’s Automotive Steel Shipments Change By 2020?
Notes:
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)