ArcelorMittal’s EBITDA at its Brazilian segment rose nearly 18 percent in Q4 2016, year-on-year, the company announced.
EBITDA at the Brazilian segment rose to $213 million, thanks to improved flat operations profitability, partially offset by lower long products profitability, including tubular operations in Venezuela, which were impacted by currency devaluation.
According to ArcelorMittal, the Brazil segment includes its flat, longs and tubular operations in Brazil, and its neighboring countries, such as Argentina, Costa Rica, Trinidad and Tobago and Venezuela.
ArcelorMittal’s net revenues in Brazil in Q4 2016 declined 16.3 percent, year-on-year, to $1.7 billion. The company’s operating income in Q4 in the Brazilian segment was $143 million, up from the negative operating income of $134 million reported on Q4 2015.
ArcelorMittal’s crude steel output at the Brazil segment fell 2.5 percent, year-on-year, to 2.77 million mt. Steel shipments in the same period dropped 1.1 percent, year-on-year, to 2.8 million mt. Average steel selling prices at the Brazil segment in Q4 remained at $565/mt, same as in Q4 2015.
ArcelorMittal said it expects apparent steel consumption in the Brazil segment to grow by 3 to 4 percent in 2017 [year-on-year] “as the economy mildly recovers as consumer confidence returns.”
Commenting the major changes implemented in 2016 at the Brazil segment, the company said there were “structural cost reductions,” optimized portfolio with the shutdown of the Point Lisas operations in Trinidad and Tobago and further “fixed cost savings in Argentina.”