ArcelorMittal Commits $1.5 Billion To Low Carbon Steel Bet In France

ArcelorMittal (NYSE:MT) stock rose Tuesday as the company confirmed a significant investment in an electric arc furnace in Dunkirk, France, aimed at decarbonizing its steel production.

Details

ArcelorMittal announced the construction of an electric arc furnace at its Dunkirk site, representing a 1.3 billion euros (~$1.55 billion) investment.

This project is expected to produce steel with three times fewer CO2 emissions compared to traditional methods, with a target start date set for 2029.

The investment is backed by regulatory support from the European Commission, which aims to limit unfair imports and reform the Carbon Border Adjustment Mechanism.

The company also highlighted a new electrical steel production unit in Dunkirk, with a 500 million euros ($595 million) investment, further expanding its product offerings in Europe.

Geert van Poelvoorde, CEO of ArcelorMittal Europe, said, “The decision to proceed with building an EAF in ArcelorMittal Dunkirk, to produce low-carbon emissions steel at scale for our customers, has been made possible because we now have the conditions in place to make this project a success.”

”The new tariff-rate quota will stem the tide of unfair imports into the EU, while the CBAM is now operating to create a more level playing field for European producers. In France, the support of the government and public authorities has been vital.”

Technical Analysis

The stock is currently trading 15.4% above its 20-day simple moving average (SMA) and 42.7% above its 100-day SMA, reflecting strong short-term momentum. Over the past 12 months, shares have surged 120.77% and are positioned closer to their 52-week highs than lows.

The RSI is at 81.10, indicating that the stock is in overbought territory, while the MACD is above its signal line, suggesting bullish momentum. The combination of an overbought RSI and bullish MACD indicates a strong upward trend, although caution may be warranted due to the overbought condition.

• Key Resistance: $62.50
• Key Support: $61.00

The recent investment in Dunkirk highlights ArcelorMittal’s commitment to sustainability and innovation in steel production. As the company navigates the evolving regulatory landscape in Europe, its strategic initiatives aim to enhance its competitive position in the market.

Earnings & Analyst Outlook

ArcelorMittal is slated to provide its next financial update on April 29, 2026.

• EPS Estimate: 97 cents (Down from $1.05 YoY)
• Revenue Estimate: $16.07 billion (Up from $14.80 billion YoY)
• Valuation: P/E of 15.1x (Indicates fair valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $38.56. Recent analyst moves include:

• Wells Fargo: Equal-Weight (Raises Target to $54.00) (Feb. 6)
• Wells Fargo: Equal-Weight (Raises Target to $47.00) (Jan. 21)
• UBS: Downgraded to Neutral (Nov. 17, 2025)

Valuation Insight: While the stock trades at a fair P/E multiple, the strong consensus and rising estimates suggest analysts view the growth prospects as justification for the current valuation.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for ArcelorMittal, highlighting its strengths and weaknesses compared to the broader market:

• Value: Strong (Score: 93.14) — Trading at a favorable valuation relative to peers.
• Quality: Strong (Score: 81.67) — Indicates a healthy balance sheet.
• Momentum: Bullish (Score: 95.75) — Stock is significantly outperforming the broader market.

The Verdict: ArcelorMittal’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is outperforming the market. The high value and quality scores suggest that the company is well-positioned for future growth, making it an attractive option for investors.

MT Price Action: ArcelorMittal shares were up 1.62% at $63.08 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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