ArcelorMittal Nippon Steel India has demonstrated its operational resilience in the third quarter of 2024, despite facing headwinds in the steel market. The joint venture, which represents a strategic partnership between global steel giants ArcelorMittal and Nippon Steel, continues to maintain its position as a significant player in India's steel sector.
The financial performance for the third quarter of 2024 revealed a slight decline in sales to $1.5 billion, representing a 2.8% decrease from the previous quarter's $1.6 billion. This reduction was primarily attributed to lower average steel selling prices in the domestic market, reflecting broader industry challenges. The EBITDA for Q3 2024 stood at $162 million, showing a 31.3% decrease from Q2 2024's $237 million, mainly due to negative price-cost effects in the operating environment.
Production volumes for the quarter reached 1,743 thousand metric tons on a 100% basis, showing a modest decrease from the previous quarter's 1,867 thousand metric tons. However, shipment levels remained relatively stable at 1,887 thousand metric tons, compared to 1,892 thousand metric tons in Q2 2024, demonstrating the company's ability to maintain consistent delivery performance despite production fluctuations.
The year-to-date performance for the first nine months of 2024 shows encouraging signs in terms of operational metrics. Total production reached 5,594 thousand metric tons, slightly higher than the 5,500 thousand metric tons recorded in the same period of 2023. Shipments also showed improvement, reaching 5,795 thousand metric tons compared to 5,383 thousand metric tons in the previous year, representing a healthy increase in market reach.
AMNS India's cumulative financial performance for the first nine months of 2024 reflects the challenging market environment, with total sales of $4.932 billion compared to $4.998 billion in the same period of 2023. The cumulative EBITDA for the nine-month period stood at $711 million, compared to $1.437 billion in the previous year, indicating the impact of market pressures on profitability.
