ArcelorMitta, headquartered in Luxembourg, is one of the world’s largest steel producers. The company operates in over 60 countries and has steelmaking facilities in 16 countries. In 2023, ArcelorMittal’s crude steel production reached 58.067 million tonnes, accounting for approximately 3.07% of the global total, ranking second in the world. By actively engaging in steel and mining operations worldwide, ArcelorMittal is committed to providing high-quality steel for critical industries such as construction, automotive, and home appliances.
Continuous Transformation and Optimization of Steel Business
According to the latest 2023 report, ArcelorMittal operates 35 blast furnaces and 30 electric arc furnaces (EAFs) globally. The number of EAFs remained unchanged from the previous year, while the number of blast furnaces increased by one due to the addition of the Pecém steel plant in Brazil, but decreased by 12 compared to 2020. This reduction is primarily aimed at achieving the company’s carbon reduction targets. Currently, ArcelorMittal is gradually transitioning to the use of EAF and direct reduced iron (DRI) technologies.
In 2023, ArcelorMittal’s long-process crude steel production totaled 43.1 million tonnes, while short-process crude steel production totaled 14.9 million tonnes. The total crude steel production decreased by 1.6% year-on-year, with the largest decline occurring in Europe. Maintenance of the Ghent Blast Furnace A in Belgium and the Bremen Blast Furnace No. 2 in Germany, along with the closure of the Fos-sur-Mer Blast Furnace No. 1 in France, contributed to an 11.3% quarter-on-quarter decrease in European crude steel production to 6.63 million tonnes in the fourth quarter of 2023. Both blast furnaces that were under maintenance resumed operations in early December 2023.
As of now, ArcelorMittal’s 35 blast furnaces worldwide have a combined annual capacity of 66.1 million tonnes, with a hot metal production of 41.3 million tonnes in 2023, resulting in a capacity utilization rate of 62.4%. The long-process steel plants are mainly concentrated in Europe, where there are 15 blast furnaces located in Belgium, Bosnia, Germany, Poland, and Spain. Europe is also ArcelorMittal’s highest crude steel-producing region, with 28.4 million tonnes in 2023, accounting for 49% of the total production (see Figure 1). Outside Europe, ArcelorMittal operates three blast furnaces in North America, seven in Brazil, and the remaining 10 are spread across Africa and the CIS region.
Additionally, ArcelorMittal’s crude steel production in Brazil has been increasing annually. In 2023, the company’s Brazilian crude steel production was 14 million tonnes, accounting for 24% of the total production and representing an increase of over 2 million tonnes, or 4% year-on-year. ArcelorMittal Brazil Vice President Jorge Oliveira announced that the company will maintain an investment of 4.87 billion USD (25 billion BRL) in 2024 to expand its steel industry. The Monlevade plant in Minas Gerais will see its annual crude steel capacity increase from 1.2 million tonnes to 2.2 million tonnes, while the iron ore capacity at the Andrade mine will increase from 1.5 million tonnes per year to 3.5 million tonnes.
Facing global steel market volatility and increasing environmental regulations, ArcelorMittal is adjusting its global production strategy. The company plans to improve efficiency and competitiveness by optimizing production lines and closing high-cost facilities. Due to rising production costs and declining finished product demand, the Zenica steel plant in Bosnia ceased coking plant operations, permanently shutting down its coking business.
Self-Sufficient Iron Ore Production
In 2023, ArcelorMittal’s self-operated iron ore production reached 42 million tonnes. North America was the company’s highest iron ore-producing region, with 26.4 million tonnes in 2023, accounting for 62% of the total production. In North America, Canadian mines had the highest output, producing 22.4 million tonnes, or 53% of ArcelorMittal’s annual total. The produced iron ore is partly for internal use, with the remainder exported. Africa and South America follow, while Europe contributes the least to iron ore production, with approximately 3% (see Figure 2).
Additionally, ArcelorMittal’s ore production decreased by about 7% year-on-year in 2023, primarily due to reductions in North America and Africa. Maintenance at ArcelorMittal Mining Canada was the main cause of the reduction in North America, while severe weather during the third-quarter rainy season led to production cuts at the Liberia mine in Africa.
ArcelorMittal’s self-operated iron ore significantly supports its steel production needs, with an annual iron ore consumption of 74 million tonnes and a self-sufficiency rate of 57%. The company operates both iron ore and steel businesses in Canada, Brazil, Bosnia, Ukraine, and Mexico.
Green Development
ArcelorMittal places great emphasis on environmental protection and sustainable production, investing heavily in green steel initiatives. The company is promoting the use of electric arc furnace (EAF) steelmaking technology, which is more environmentally friendly than traditional blast furnace steelmaking and significantly reduces carbon emissions.
In October 2022, the ArcelorMittal Dofasco plant in Hamilton, Ontario, Canada, broke ground on an 18 billion CAD decarbonization project. This project will transition the Hamilton plant from a blast furnace-basic oxygen furnace (BF-BOF) route to a DRI-EAF route. Additionally, ArcelorMittal will invest 1 billion EUR in its Gijón plant in Spain to create the world’s first fully zero-carbon emission steel plant.
Ongoing Projects
ArcelorMittal allocates substantial annual expenditure for equipment upgrades and project expansions. The company plans capital expenditures of 4.5 to 5 billion USD in 2024, with 1.4 to 1.5 billion USD earmarked for strategic growth capital expenditures.
Current steel projects under construction include a blast furnace in Brazil, expected to add 1 million tonnes of steel capacity by the second half of 2026. ArcelorMittal also plans to build a new specialty steel plant in France and an EAF steel plant in Spain, expected to be completed in the first half of 2026. Additionally, the company will construct the world’s largest steelmaking plant in Gujarat, India, with an annual capacity of 24 million tonnes, projected to start production in 2029.
On the iron ore front, ArcelorMittal Brazil is expected to complete a 4.5 million tonne per year DRI pellet plant by the second half of 2024, adding 2.25 million tonnes of sintering capacity. In Mexico, a 1 million tonne pellet capacity expansion project is expected to be completed by the second half of 2025. In Liberia, ArcelorMittal’s Yekepa iron ore processing plant project, valued at approximately 1.7 billion USD, was inaugurated on May 23, 2024, and will become one of Africa’s largest beneficiation plants upon completion.
Overall, ArcelorMittal is striving to adapt to global economic and environmental policy changes through technological innovation and market diversification, continuously enhancing its competitiveness and market influence. Looking ahead, ArcelorMittal plans to further expand its global operations, particularly in emerging markets. With the continued growth of the Chinese market, ArcelorMittal has increased its investments in China. As early as 2008, ArcelorMittal, together with Hunan Valin Steel Co., Ltd. and Valin Group, established a joint venture automotive sheet company with an investment of 5 billion RMB. Recently, ArcelorMittal (China) NEMM New Energy Project representatives visited Xibao Group for a study and discussion on low-carbon manufacturing, industry trends, and development strategies. The project representatives expressed a desire to strengthen practical exchanges with Xibao Group and actively promote cooperation on low-carbon manufacturing and green sustainable development to better address global economic and environmental challenges.