ArcelorMittal Shares Drop 2.5%, Falling Below its 20-Day Moving Average Amid Carbon Market Concerns

The stock falls below its 20-day moving average after a 112% annual rally

ArcelorMittal shares have dropped 2.35% to €56.46, down from €57.82 the previous day. The stock is among the steepest declines in the CAC 40, ranking low alongside Carrefour, Capgemini, Stellantis, and Renault. The Paris index itself has fallen by 0.12% at the same time, highlighting the isolated nature of the movement in the steel sector. The price has fallen below the MM20 (€58.69), with a gap of -3.80%, marking a clear break in short-term dynamics.

The MM50 at €54.54 now acts as a natural cushion, with the price being 3.52% above it. The RSI at 52 remains neutral, indicating no particular tension. The performance remains strong over a longer period, with a gain of nearly 25% over three months and 112% over a year, positioning the stock well above its MM200 (€43.49).

European Steelmakers Call for Reform of the EU ETS Carbon Market

ArcelorMittal, thyssenkrupp Steel, and voestalpine issued a joint call yesterday to adapt the European Union's emissions trading system. The three groups warn that the current architecture could undermine the competitiveness of the European steel industry and hinder its energy transition. This joint initiative comes as Chinese statistics remain mixed, with a manufacturing PMI of 50.3 in April but an OECD leading indicator trending at 98.91 in May, impacting sector sentiment.

The decline in Brent crude to around $79.62 a barrel, down more than 16% in a few sessions following the US-Iran agreement, indirectly reduces the energy costs for European steel mills. The technical support reference remains at €51.26, about 9% below the current price, while the resistance at €62.14, already tested in early June, frames the upper zone.