Strategic trade
Trade view / 06 October 2015 at 8:31 GMT

#SaxoStrats: ArcelorMittal weak as steel

Head of Equity Strategy / Saxo Bank
Instrument: MT:xams
Price target:
Market price:

ArcelorMittal shares are down 44% this year as the slowdown in China and weak steel prices continue to weigh on steel.

The company's weak outlook looks set to persist as global economic demand remains subdued over the coming quarters. There are early signs of a rebound in economic activity but we expect a long lag into the steel industry .

ArcelorMittal's profit warning, issued earlier this year, could easily be followed up by more profit warnings and banks are likely to pressure ArcelorMittal to cut net debt further as debt load is increasing.

Management and risk description

Key risks include the firm's Q3 earnings release on November 6, higher steel prices, a better global macro environment.

ArcelorMittal share price since 2009:

Create your own charts with Saxo Trader click here to learn more.

Source: Saxo Bank 


Entry: sell MT:xams at market.

Stop: set stop at €6.10, steps of €0.10.

— Edited by Michael McKenna

For more on equities click here.

Non-independent investment research disclaimer applies. Read more


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail