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ArcelorMittal: returns to balance despite light, strike and raw materials

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ArcelorMittal: returns to balance despite light, strike and raw materials

ArcelorMittal Presented and panorama must be favorablein the middle of the crossroads of the recovery of the recovery, for this first of the year after the results and they expected that, in price pressures, the worst would be over. They were wrong.

Despite the preventive measures, the whole environment seems to have clouded the prospects of the company, which already expected EBITDA in this current quarter to be above the last one, the one that closed 2021 in which it fell by 17%, above 5,050 million. It has now encountered a perfect storm from which it is resurfacing these days, coming back into balance with the market since the start of the exercise.

If that to the rise of the precious light, already exponentially, With precious that the currents have come to double, there is the increase in the cost of its raw materials, from coke, to iron ore, one of the most punished by the way, and now the transport strike that leaves its factories without material. Thus, in Asturias, production has had to be stopped in part, aggravating this negative scenario of the economic uncertainty that they will suffer due to the Russian invasion of Ukraine.

The company also recalls that these shutdowns endanger the necessary investments that the company must undertake linked to the carbonization program. And it adds to the stops experienced in Olaberría for numerous hours, a short stop as it is called due to the high prices of electricity. All this two weeks after completely stopping its steel production in Ukraine. As if all that weren’t already enough, It looks at China with concern about the confinements and the impact it may have on the company, especially through consumption.

In its stock chart we see that the value Earn and 8% in the previous 20 sessions and after the initial falls of the war it recovers 13.8% for stabilize, right now in equilibrium with the market after the global record recovery of the past day 11 with advances harvested of 5.7%.

Arcelor annual stock price

Arcelor annual stock price

While we have known that, to the National Commission of the Market and the Competition, the CNMC has fined ArcelorMittal along with other companies for its scrap market cartel and that, altogether, they reached 24 million euros. Consider that anti-competitive exchanges of information take place between it and Sidenor in the ferrous scrap purchase market. Just over half of the penalty corresponds to the company.

On the positive side, the announced investment that has just been made in France stands out, with the support of the governmentfor about 300 million euros to create a new electrical steel production unit at its Mardyck plantin the north of the country, which will also generate more than 100 direct jobs.

ArcelorMittal “manages to breach the great resistance zone around 30.86 / 30.145 euros per share. The price correction removes the overbought excesses in the MACD oscillator. The first area of ​​support would be in the medium and long term simple mobile media. The next relevant support zone is spotted around 23.30 / 22.825 euros per share and the long-term bullish guideline in fuchsia”, as indicated by the independent analyst, Néstor Borrás.

ArcelorMittal on daily chart with Average Amplitude Range in percent, MACD oscillator and Trading VOLUME

ArcelorMittal value technical analysis

ArcelorMittal value technical analysis

In addition, the technical indicators prepared by Investment Strategies place Arcelor Mittal, after the review, in consolidation mode with a reduction of three points until it consolidates 6.5 total score out of 10 possible for value. The value moves as its main characteristic with a long-term downward trend, which is what mainly weighs down its note and joins the medium-term volatility that is growing.

Meanwhile, among the highlights the medium-term upward trend shown by the value, the total moment, both slow and fast, which is positive, the volume of business that, in its two aspects, in the medium and long term, is growing, as well as the decreasing range of amplitude in the long term, which is decreasing.

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