Particle.news
Download on the App Store

U.S. Tariffs Drive ArcelorMittal Pecém to 2025 Loss as Plant Pivots to Special Steels

The move targets margins hurt by steep U.S. duties plus low‑priced imports.

Overview

  • ArcelorMittal Pecém posted a R$168.6 million net loss for 2025 after a record profit in 2024, citing U.S. steel surtaxes of up to 50% and the knock‑on shift in trade flows.
  • Results weakened across the board as EBITDA fell 90.5% to R$102.7 million, gross profit dropped 82.8% to R$205.8 million, and net sales slipped 12% to R$9.2 billion.
  • The plant is pushing higher‑value special steels to 40% of output, about 1.2 million tonnes a year, relying on process improvements rather than new capital spending.
  • Management says it will keep R$1.69 billion in purchases in Ceará in 2026 and reports no cuts to its own workforce, even as subcontractor roles are refilled through other contracts.
  • A separate dispute with contractor Evsa continues after a labor court ordered seizure of Evsa assets to cover R$15 million in severance for 398 workers, while ArcelorMittal Brasil’s Q1 Brazil revenue rose 6.1% to US$2.81 billion as operating profit and EBITDA fell.