The illegal 57-day blockade of part of the ArcelorMittal facilities in Mexico by the Mining Union of Congressman Napoleón Gómez Urrutia impacted an 11.7 percent reduction in steel shipments, a reduction of $185 million in billing and a loss of $100 million in EBITDA, according to ArcelorMittal’s global quarterly report, analyzed by SteelOrbis.
“Sales in 2Q 2024 decreased by 5.5 percent to $3.2 billion, as compared to $3.3 billion in 1Q 2024 primarily on account of a 11.7 percent decrease in steel shipments, primarily flat products, impacted by an illegal blockade at our Mexican operations,” ArcelorMittal informed its investors on the stock exchanges of New York, Amsterdam, Paris, Luxembourg and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia.
That 5.5 percent reduction is equivalent to $185 million, according to figures reviewed by SteelOrbis.
From May 24 to July 19, the Mining Union blocked a blast furnace and a mining complex of the company in the western city of Lázaro Cárdenas, in the Mexican state of Michoacán.
“The impact is an estimated loss of approximately 0.4 million mt in volume and $0.1 billion EBITDA in 2Q 2024,” the company reported.
The impact on the volume coincides with the 375,000 mt that SteelOrbis reported in the follow-up to the blockade of unionized workers in Mexico.
Original Article: https://www.steelorbis.com/steel-news/latest-news/illegal-blockade-in-arcelormittal-mexico-impacts-ebitda-for-q2-1351545.htm
