Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 22

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 22
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 such raw materials under supply contracts from third parties . Industry and overall decarbonization efforts may also result in increased and/or volatile prices, in particular, higher energy and carbon dioxide ("CO 2 ") prices as well as scrap prices (due in particular to an industry shift to EAF production). See "“Business overview —Products—Mining products”, “Business overview—Products— Other raw materials and energy” and “Operating and financial review—Key factors affecting results of operations—Raw materials”. The compression of steel spreads, including from inflationary cost pressures and negative price-cost effects, has resulted, and may in the future result, in the Company reducing or ceasing production at certain plants. See "Key transactions and events in 2024". Production cuts do not eliminate all costs as the Company still incurs operating costs when production capacity is idled and may incur increased costs to resume production at idled facilities. Idling can also impact the long-term health of assets, despite steps taken to protect them. Furthermore, while steel and certain raw material (in particular iron ore and coking coal) price trends have historically been correlated, the Company has experienced (particularly in Europe and North America) negative price-cost effects due to differences in steel and raw material price trends (including due to sudden spikes in raw material prices). See "Operating and financial review—Key factors affecting results of operations". The Company is likely to continue to experience such negative effects in the future as this is a structural feature. ArcelorMittal’s other principal input costs that affect its level of profitability are energy and transportation. Energy expenses are sensitive to changes in electricity, energy transportation and fuel prices, including diesel fuel, natural gas and industrial gas. While the Group has some long-term contracts with electrical, natural gas and industrial gas suppliers, it is exposed to fluctuations in electricity, natural gas and industrial gas prices that can fluctuate widely with availability and demand levels from other users. In addition, in certain circumstances (such as periods of peak usage), supplies of energy in general may be curtailed, and the Company may not be able to purchase them at historical rates or at all. Supply disruptions may also cause energy prices to increase, as has occurred previously (and is likely to occur in the future) due to geopolitical conflicts (such as the Russian-Ukraine war and conflicts in the Middle East) and destructions of gas pipelines. Such events and any other significant cuts in energy supplies or a collapse in demand due to supply issues or otherwise have resulted, and may in the future