ArcelorMittal (MT) Supplying Cryogenic Steel Plates To Shell

ArcelorMittal (NYSE:MT) announced that it is supplying 770 tons of cryogenic steel plates for Shell’s new petrochemical complex that is presently under construction in Pennsylvania. The company produces CryElso 9Q 9% nickel plates through its subsidiary Industeel Creusot, France. The cryogenic steel will be used in the construction of the liquid gas storage units.

Notably, the tough steel has the ability to withstand freezing temperatures as low as -160°C and the plates are delivered in 5-30 mm thickness. Moreover, Industeel is one of the top 9% Ni producers across the globe and its range of cryogenic steel is successfully meeting the technological specifications of Shell (LON:RDSa). The company said that it is well positioned to serve customers in the United States and is proud to be part of this project.

Shell’s new petrochemicals complex will use ethane from shale-gas producers to produce 1.6 million metric tons of polyethylene per annum, which is used in making products such as sports equipment, food packaging, furniture and automotive components.

ArcelorMittal, which is amongst the prominent steel producers along with Nucor Corporation (NYSE:NUE) , Steel Dynamics, Inc. (NASDAQ:STLD) and United States Steel Corporation (NYSE:X) , logged a net income of $1,039 million or $1.02 per share in fourth-quarter 2017, up from $403 million or 40 cents a year ago. The company’s adjusted earnings came in at 90 cents per share that beat the Zacks Consensus Estimate of 80 cents.

According to ArcelorMittal, market conditions are favorable and demand environment remains positive along with healthy steel spreads. The company expects global apparent steel consumption to grow in the range of 1.5-2.5% in 2018.

In the United States, the company sees apparent steel consumption growth of 1.5-2.5% in 2018, factoring in higher construction and machinery demand. The company also anticipates 1-2% growth in apparent steel consumption in Europe.

Moreover, apparent steel consumption is forecasted to rise 6.5-7.5% in Brazil as the economy is expected to turnaround with improved consumer confidence as construction recovers. Apparent steel consumption in China increased 3.5% in 2017. It is expected to remain close to this level in 2018 as weakness in the real estate sector is likely to be partly offset by strong infrastructure and automotive end markets.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Steel Dynamics, Inc. (STLD): Free Stock Analysis Report

ArcelorMittal (MT): Free Stock Analysis Report

United States Steel Corporation (X): Free Stock Analysis Report

Nucor Corporation (NUE): Free Stock Analysis Report

Original post

Zacks Investment Research