The global economic slowdown reflected in ArcelorMittal’s fourth-quarter-2022 steel shipments, which slumped 20% on-year to 12.6 million tonnes. Full-year shipments dropped 11% versus 2021 to 55.9mt. The firm nevertheless expects 2023 shipments to rebound by 5%.

The 2023 guidance does not include the prospective CSP acquisition and assumes no change in Ukraine.

Fourth-quarter crude steel output dropped 20% to 13.2mt. Iron ore shipments from AMMC and Liberia fell 3% to 6.9mt.

2022 crude steel output was down 15% to 59mt, with iron ore shipments up 8% to 28mt.

This compares to a 9% drop in steel shipments and 13% drop in crude steel output after the first half-year.

The recovery in deliveries will be aided by an expected 2-3% rise in global apparent steel consumption excluding China in 2023 (see separate Kallanish story).

Capital expenditure in 2023 is forecast at $4.5-5 billion versus $3.5 billion in 2022 and $3 billion in 2021. Besides larger decarbonisation capex, the previously announced strategic pipeline (2021-2024) has now increased by $0.5 billion to $4.2 billion, with the addition of a new production unit for electrical steels at the Mardyck site in northern France.

Fourth-quarter sales fell 19% on-year to $16.89 billion, while net income attributable to equity holders of the parent fell to only $261 million against $4.05 billion a year earlier. Ebitda was down 75% to $1.26 billion.

Thanks to the strong H1 earnings and 17% higher full-year sales prices, 2022 sales rose 4% on-year to $79.8 billion. However, net income fell 38% to $9.3 billion. Ebitda was down 27% to $14.16 billion. In H1, sales had risen 24% and net income by 28%.

“Despite the challenges that emerged as the year unfolded, our full year results demonstrate the benefits of our strengthened asset portfolio and the improvements we have made to our cost base in recent periods,” says ArcelorMittal chief executive Aditya Mittal. “This, alongside the mitigatory actions we took in the second half of the year to adapt production levels and optimise energy consumption, has added resilience to our business.”