ArcelorMittal Shares Drop 4%: Oil at $106 Weighs Down the Sector
ArcelorMittal SA experienced a significant decline this Thursday midday, falling 4.1% to 44.20 euros in a Parisian market that was also trending downward. The Luxembourg-based steelmaker's stock marked its largest daily drop in several weeks, erasing some of the gains accumulated over the past three months. The CAC 40 index lost 0.99% during the session, while the SBF 120 index fell by 1.01%.
Dropping to 44.20 euros, ArcelorMittal SA has significantly distanced itself from its 20-day and 50-day moving averages, which stand at 49.58 and 48.39 euros respectively. This decline confirms a bearish momentum that has been building over several sessions, with the stock already down 3.05% over the past seven days. The price is now approaching the support threshold identified at 42.01 euros, a level that could provide technical support if selling pressure continues. The RSI, an indicator measuring the speed and magnitude of price movements, is at 34, close to the oversold zone typically set below 30. This level indicates a rapid retreat of the stock which, nonetheless, maintains a commendable performance over three months (+15.04%) and over a year (+49.93%). The 200-day moving average, at 35.88 euros, remains well below the current price, which puts the recent decline into perspective against the long-term trend.
Market Tensions and Rising Oil Prices Impact Steel Sector
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ArcelorMittal's sharp decline occurs in a tense market environment. The VIX, the S&P 500's implied volatility index, was at 26.95 in its last reading on March 24, up 3.06%, indicating a high level of tension in financial markets. The surge in oil prices, with Brent reaching $106 per barrel on March 26 due to escalating verbal exchanges between Washington and Tehran, is impacting the energy costs of the steel sector, where ArcelorMittal is a major global player. Energy is indeed a significant expense in steel production costs. Other European industrial stocks are also facing sell-offs in this session: Schneider Electric is down 2.42% and Airbus is down 2.53%. The next financial appointment for the Luxembourg-headquartered group is set for April 30, 2026, when it will publish its first-quarter results. Until then, developments in Middle Eastern tensions and their impact on energy prices will remain crucial factors for the sector as a whole.
Nous restons confiants dans les perspectives d'ArcelorMittal pour le reste de l'année.
Résultats du 1er trimestre démontrant une résilience avec des marges améliorées.
Risks mentioned
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La dépense d'impôts sur le revenu pour le 1T 2026 était de 136 M$.
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Pressions sur le coût des matières premières en raison de l'inflation.
Opportunities identified
L'augmentation de la production d'acier brut à 13,3 Mt en 1T 2026.
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The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
