MT - ArcelorMittal CEO says decarbonization would raise steel prices as much as 20%
2023-03-09 16:53:54 ET
Stripping out carbon from steel production would drive up prices by 10%-20% , potentially invalidating green producers' business model, ArcelorMittal ( NYSE: MT ) CEO Aditya Mittal said Thursday.
"The cost to decarbonize steel is not so prohibitive, so the system could take it," the CEO said at a World Trade Organization event, according to Reuters, but 10%-20% for the steel industry is a lot because we have low margins... If someone comes in and undercuts, and then steel companies which are producing decarbonized steel will not have a viable business mode."
Separately, ArcelorMittal ( MT ) said it has completed the acquisition of Companhia Siderúrgica do Pecém in Brazil for an enterprise value of ~$2.2B.
ArcelorMittal ( MT ) has said the deal will expand its position in the high-growth Brazilian steel industry and add 3M metric tons of high-quality and cost-competitive slab capacity .
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ArcelorMittal CEO says decarbonization would raise steel prices as much as 20%