ArcelorMittal drops almost 6% amid Deutsche Bank move fueling demand concerns

Shares of the biggest, European steel producer ArcelorMittal (MT.NL) tumbles today almost 6% after a downgrade by Deutsche Bank. Analysts are concerned about steel demand. In a research note, bank pointed out that ArcelorMittal's share price has recovered from the 2023 drop, due to the operational exit from Kazakhstan and share buybacks. Despite that, strategic markets, especially weak industrial activity in China, weigh on steel and iron ore demand. The DB recommendation was downgraded from 31 to 29 EUR with 'hold' rating vs previous 'buy'. Also today, industrial production data from China came in weaker than expected, increasing 4.5% YoY in March (exp. 6.0% YoY). Shares recovered some loses after higher than expected ZEW index, from Germany.

Arcelor Mittal (D1 interval)

Shares defend today a very important level of 24 EUR, where we can see support from SMA200 (the red line).

Source: xStation5