ArcelorMittal stops decarbonization: shock for the German steel industry!

ArcelorMittal stops decarbonization: shock for the German steel industry!

ArcelorMittal, the world's leading steel producer, has decided to temporarily stop investing in the decarbonization of its facilities in Germany. This decision was made due to ongoing market uncertainty. The company, which expects net sales of EUR 60.97 billion in 2025, faces challenges that threaten the implementation of planned environmentally friendly projects.

The after-hours price for ArcelorMittal shares is currently EUR 26.18 on June 20, 2025, which represents an increase of 1.28% compared to the last closing price of EUR 26.12. Nevertheless, the market fluctuates, highlighting the uncertainties the company is facing. Loud Market screener ArcelorMittal plans to reconsider previously halted projects in the area of ​​environmental technology and CO2 reduction in Germany.

Financial indicators

ArcelorMittal's financial position indicates a market capitalization of EUR 22.78 billion, while the company reports a P/E ratio of 7.35 for 2025 and 6.04 for 2026. Net debt is estimated at EUR 5.32 billion for 2025 and EUR 4.64 billion for 2026. These figures reflect the economic conditions that exist in Europe and beyond.

The company's sales distribution shows that 56.7% of sales come from carbon flat steel, 21.4% from carbon long steel and 2.8% from pipe products. Iron ore and coal contribute 1.9% to total sales, while other, mainly from steel processing and distribution, accounts for 17.2%. The main sectors in which the products are used are automotive, household appliances, packaging and construction.

Geographic market distribution

The geographical distribution of sales shows that Germany accounts for 9.3% of total sales, followed by Poland (7.1%), France (6.7%) and Spain (6%). Together, Europe accounts for 23.4% of sales, while the USA contributes 13.5% to the overall balance. The American market as a whole contributes 25.4%, while Asia and Africa together contribute 8.6%. This distribution demonstrates the company's broad geographical presence.

Analysts are currently recommending increasing ArcelorMittal shares. The median price target is $35.14, which represents a distance of +18.53% from the current price. Despite challenges, such as the pause in decarbonization investments, the company remains optimistic about its long-term development.

In summary, ArcelorMittal is facing a challenging and critical period in which both internal and external factors will be crucial to the company's future course. Considering the financial metrics and market distribution, ArcelorMittal's relevance in the steel industry remains undisputed, while the challenges in decarbonization continue to have a significant impact on the company's strategic direction.

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