Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 165

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 165
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 is subject to rigorous verification processes prior to inclusion in resource estimation databases. These procedures can include, but are not limited to, external database validation by independent parties, internal database audits, and spatial and statistical analyses. Where historical data cannot be verified to the satisfaction of the relevant qualified person, it is excluded from the databases used in the estimation processes. Where applicable, all mineral resource and mineral reserve estimates are reconciled against mine production data and operational results. Geological interpretations and estimation parameters are updated, and modifying factors, cost and price assumptions validated and adjusted. There are inherent risks associated with all mineral resource and mineral reserve estimations see "Introduction—Risk Factors —Risks associated with ArcelorMittal's Mining Activities". OPERATING AND FINANCIAL REVIEW Key factors affecting results of operations Overview The steel industry, and the iron ore and coal mining industries, which provide its principal raw materials, have historically been highly cyclical. They are significantly affected by general economic conditions, consumption trends as well as by worldwide production capacity and fluctuations in international steel trade and tariffs. This is due to the cyclical nature of the automotive, construction, machinery and equipment and transportation industries that are the principal consumers of steel. In 2022, the global economy was adversely affected by supply chain issues, high inflation, consequential tightening of monetary policy and Russia’s invasion of Ukraine (itself aggravating inflationary pressures, particularly in the energy sector). All these shocks weighed on growth in ArcelorMittal’s core developed markets (EU, U.S.), with a negative impact on steel demand and pricing. During 2023 and 2024, real steel demand broadly stabilized at low levels in the core developed markets with apparent demand supported somewhat by an end to the destocking seen in 2022 . The lagged impact of monetary tightening and weak real steel demand weighed on prices in the core developed markets during the second half of 2023 and through 2024, negatively impacting ArcelorMittal’s profitability. While the economy and underlying real demand was stronger in the U.S. relative to Europe during 2024, supported by continued growth in consumer expenditure, the lagged impact of tighter credit conditions and elevated interest rates negatively impacted output of interest rate sensitive sectors (e.g., machinery and residential construction), causing real steel demand to remain subdued. The European market heavily impacts the Company's prospects and economic growth has stagnated over the past 18 months Although, the European Central Bank has cut the deposit interest rate, as inflation has fallen th e lagged impact of prior elevated interest