) announced that its operations in Liberia shipped about 3
million tons of iron ore from Jan 1 to Aug 8, 2013. It was almost
double the shipment registered in the same period a year ago. The
company shipped 516,000 tons of iron ore in the month of Jul 2013
which nearly tripled from 175,138 tons shipped in Jul 2012.
The improvements in Liberia operations led to the increased
shipments. The main contribution came from the ability to carry
out transshipment in the dry season. A smaller vessel is loaded
for three or four rotations during transshipment, transmitting up
to 60,000 tons of ore to Cape-size ocean going vessels of up to
200,000 tons. The ore is then transported to customers in Europe
and China. ArcelorMittal has already shipped 3 million tons of
ore in 2013 and remains on track to produce 4.5 million tons in
The Liberia operations also combat the effect of rain on
operations especially because the rainy season remained a
challenge for ArcelorMittal in 2012. In order to mitigate this,
the company is implementing a polymer blending facility which
will help in overcoming the potential risks related to high
moisture content in iron ore and solve the concerns over shipping
during the rainy season.
A few days ago, ArcelorMittal announced plans to restart an
expansion project at its Monlevade and Juiz de Fora sites in
Brazil. The project expansion is expected to increase the
annual production capacity from 3.75 million tons to 4.9 million
Monlevade is expected to produce 1.05 million tons per year of
coil on capital investment of $140 million. The expanded wire rod
from Monlevade is expected to enhance supply of added value
products mainly to the domestic construction and automotive
On the other hand, Rebar capacity at MT's Juiz de Fora site
will be increased from the current 50,000 to 400,000 tons a year.
Also, the site's melt shop will produce an extra 200,000 tons of
billets per year using its new ladle and new sixth strand in the
continuous caster. Additional rebar at the Juiz de Fora site is
expected to go into downstream cut and bend operations for civil
construction end users.
ArcelorMittal currently maintains a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks
Nippon Steel & Sumitomo Metal Corporation
Kobe Steel Ltd.
). While Nippon Steel maintains a Zacks Rank #1 (Strong Buy),
Kobe Steel and Ternium each hold a Zacks Rank #2 (Buy).
KOBE STEEL-ADR (KBSTY): Get Free Report
ARCELOR MITTAL (MT): Free Stock Analysis
NIPPON STEEL CP (NSSMY): Get Free Report
TERNIUM SA-ADR (TX): Free Stock Analysis
To read this article on Zacks.com click here.