UNITED STATES May 14 2015 3:45 PM
NEW YORK (Scrap Register): ArcelorMittal North America has reported a decline in its net profit during the first quarter of this year due to a drop in steel shipments and production.
ArcelorMittal steel shipments decreased by 2.67% year-over-year during the first quarter of this year. Most steel companies in the United States (IVV) have reported a decline in steel shipments.
Moreover, as steel production declined, fixed costs were distributed among fewer units. This negatively affected the company’s unit production costs.
However, the steel production in the United States dropped by 6% year-over-year during the first quarter of this year.
Steel companies in the United States are suffering from a demand slowdown, as steel demand from the energy sector has come down.
To add to these woes, steel inventories rose significantly towards the end of last year. Metal service centers like Reliance Steel & Aluminum (RS) ordered more steel from overseas producers in order to take advantage of lower prices.
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