Wednesday, February 10, 2016

Collapse: Locked out of credit markets, world’s largest steelmaker loses 8 Billion in 2015 and begs investment suckers for funds.

International Business
ArcelorMittal Reports Nearly $8 Billion Loss and Plans to Raise $3 Billion
LONDON — In a sign of severe distress in global steel making,ArcelorMittal said on Friday that it lost nearly $8 billion last year, and that it planned to seek $3 billion in new capital from shareholders to shore up its finances.
Shares of the company, the world’s biggest steel maker, fell more than 5 percent on Friday in Amsterdam. The company is among the many big producers of commodities that has been hit by lower demand from the slowing global economy. But ArcelorMittal is taking pains to lay blame on China.
ArcelorMittal said its loss — including a $6.7 billion retreat in the fourth quarter last year — was mainly down to falling steel prices that were depressed by a surge of Chinese exports, and to write-offs in the company’s large mining business. In the fourth quarter of 2014, ArcelorMittal lost $955 million.
China’s economic slowdown is upsetting the calculus of just about all commodity producers, including steel makers, but with a twist.
Steel crisis spreads to Europe as Arcelor Mittal shuts Spanish plant
Steelmaker mothballs Spanish plant, showing crisis that has cost 5,000 UK jobs is spreading to Europe

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