ArcelorMittal Partners With VELUX for Low Carbon-Emission Steel

ArcelorMittal S.A. MT has signed a 10-year agreement with VELUX Group to supply recycled and renewably produced steel.Last year, the two companies decided to form an alliance to reduce the carbon footprint of steel used in VELUX roof windows by up to 70% compared to conventionally produced steel. The agreement included testing and validating ArcelorMittal's XCarb recycled and renewably manufactured steel, as well as its performance in VELUX roof window hinges and installation brackets.The signing of this 10-year commercial agreement, which establishes a framework for steel supply, is the consequence of successful outcomes. VELUX is gradually expanding order intake so that, by 2025, XCarb will be utilized in various steel components for VELUX roof windows, replacing traditionally produced steel.Metals (excluding aluminum) primarily consist of steel, accounting for 5.7% of the VELUX Group's total scope 3 emissions. XCarb is made with at least 75% recycled steel and uses 100% renewable electricity. An ArcelorMittal production facility in Northern Spain uses an electric arc furnace driven by renewable energy sources to make XCarb. Investigations are underway to further reduce the carbon footprint of ArcelorMittal's steel delivered to VELUX.VELUX works with its suppliers to explore various essential materials, including steel, to reduce its overall carbon footprint and that of its products. VELUX intends to cut its scope 3 upstream emissions by 50% by 2030.Shares of ArcelorMittal have gained 1.9% over the past year against a 2.7% decline of its industry.Image Source: Zacks Investment ResearchMT, on its second-quarter call, said that it believes that the current market conditions are not sustainable due to China's excess steel production relative to demand, which resulted in very low domestic steel spreads and aggressive exports. Both Europe and the United States are experiencing steel prices below the marginal cost. Nevertheless, the company anticipates higher apparent demand in the second half of 2024 compared with the same period in 2023, which was affected by destocking, especially in Europe. With absolute inventory levels remaining low in Europe, the company is optimistic about the potential for restocking activity as real demand begins to recover. MT now projects 2.5-3% growth in global steel consumption, excluding China, in 2024, compared with its prior view of 3-4% growth.ArcelorMittal Price and Consensus ArcelorMittal price-consensus-chart | ArcelorMittal QuoteZacks Rank & Key PicksMT currently carries a Zacks Rank #5 (Strong Sell).Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG and Centrus Energy Corp. LEU. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 140.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 51 cents, indicating a year-over-year rise of 466.7%. The Zacks Consensus Estimate for IAG's current-year earnings has been going up in the past 30 days. IAG, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 200%. The company's shares have rallied roughly 114.8% in the past year.The Zacks Consensus Estimate for Centrus’ current-year earnings is pegged at $3.06 per share. LEU, a Zacks Rank #1 stock, beat the consensus estimate in three of the last four quarters while missed once, with the average earnings surprise being 107.1%. LEU has rallied around 16% in the past year. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Iamgold Corporation (IAG): Free Stock Analysis Report Centrus Energy Corp. (LEU): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks