ArcelorMittal Shares Drop Nearly 2% and Fall Below a Technical Threshold
In the mid-afternoon, the Luxembourg-based steelmaker consolidates, despite an overall upward trend in the CAC 40. Following a spectacular year-long rally, the stock is now at the lower end of the Parisian index and has fallen below a short-term technical threshold. This decline occurs as Chinese statistics send mixed signals about global industrial demand.
The Stock Drops Below its 20-Day Moving Average and Slides to the Lower End of the CAC 40
ArcelorMittal has dropped 1.96% to €58.06, down from a previous close of €59.22. This movement stands out in a CAC 40 that has risen by 0.19%, positioning the steelmaker among the largest declines in the leading Paris index alongside Orange and Stellantis. Today's drop has pushed the stock slightly below its 20-day moving average (€58.49), a deviation of -0.74%, which until now had acted as a short-term pivot. However, the cushion remains comfortable over longer horizons: the price is 6.9% above the MM50 and nearly 34% above the MM200, indicating a still distinctly bullish long-term trend. The RSI at 58 remains neutral, sending no extreme signals, while the MACD has moved into slightly negative territory (-0.27), confirming a short-term momentum slowdown. The day's loss brings the weekly performance to +2.9%, without denting the nearly 117% gain over the past year.
Mixed Chinese Statistics and Geopolitical Risk Weigh on Cyclical Stocks
The data released in China provide a mixed signal for the steel industry. Industrial production accelerated to +4.5% year-on-year in May, but retail sales contracted by 0.6%, the first decline since the end of 2022, and fixed asset investment also fell due to the residential real estate sector. This sawtooth growth profile revives doubts about the demand for industrial metals, with Beijing remaining the world's largest consumer. Concurrently, the G7 summit in Évian is reviewing an American memorandum on Iran discussing a gradual reopening of the Strait of Hormuz by June 19, which is affecting Brent prices (-4.3% in session at $79.62/barrel, -16.7% over nine sessions). Today's consolidation also follows several strategic steps largely integrated by the market, including the sale of 10% of Vallourec's capital at €24 per share in May. The identified technical support at €51.26 remains distant, while the €62 resistance targeted during the last bullish phase is the next level to watch in case of a rebound.
