ArcelorMittal, the world's largest steel producer, cut its full-year profit forecast on Friday, saying that cheap Chinese exports had hit steel prices and customers were holding off making new orders.
While ArcelorMittal has little presence in China, the Chinese market is the largest producer and consumer of steel, and the country's slowing economic growth has led to a flood of exports, prompting the company to forecast 2015 core profit (EBITDA) of $5.2 billion to $5.4 billion, down from previous guidance of between $6 billion and $7 billion. ArcelorMittal forecast global steel consumption would be lower this year than last, cutting its outlook due to a worse view of the U.S., Brazilian and Chinese markets.
The trend MT [NYSE] is decreasing since the beginning of 2014 and these data will deepen. After the correction in the last ten days are possible sell profitable positions in the direction of the trend. Volatility relatively not high (= 4,25% weekly); Current price = $ 5.46 at 52W Range = $ 4.96 / $ 12.45.
G.Hristov / Head of Fundamental Analyzes
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