ArcelorMittal SA logo

MT - ArcelorMittal SA News Story

$24.37 0.8  3.3%

Last Trade - 7:29pm

Sector
Basic Materials
Size
Large Cap
Market Cap £18.91bn
Enterprise Value £24.89bn
Revenue £38.34bn
Position in Universe 447th / 6647

BUZZ-European steel: CS turns cautious, prefers late-cycle names

Mon 18th January, 2021 6:54am
** Credit Suisse turns more cautious on the EU steel sector 
as margin recovery priced into steel equities is running ahead
of fundamentals
    ** The broker notes that current steel spot margins are
comparable to 2018 levels, but utilisation rates in 2021 will be
about 9pp below the levels recorded in 2018
    ** Slowing real demand momentum and normalising inventory
levels would contribute to reversing margin momentum at the
back-end of H1 2021, especially for early-cycle names, it adds
    ** The brokerage forecasts EU steel prices to drop by about
26% by the end of 2021 as a result of mill supply response,
higher net imports, and a slowdown in Chinese steel production
in H2
    ** CS reshuffles its coverage towards late-cycle names and
cuts ArcelorMittal  MT.LU  to "neutral" from "outperform", while
double downgrading Klöckner  KCOGn.DE  and Salzgitter
 SZGG.DE  to "underperform" from "outperform"
    ** On the contrary it ups SSAB  SSABa.ST  to "outperform"
from "neutral", and voestalpine  VOES.VI  to "neutral" from
"underperform", naming late-cycle character and long-term
contract pricing as the reason

 ((joanna.wodzicka@tr.com))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.