Investing in Arcelor Mittal
However, being a stable and recognized company is not enough to make the decision to invest in it. For this reason, we show you what you should consider and the benefits that investing in this company’s shares will produce.
What is Arcelor Mittal?
In the global steel and mining industry, Arcelor Mittal emerges as one of the largest. It has contracts with more than 60 countries and has established industrial facilities in 18 of them. They manage to produce and distribute steel for the world’s main markets such as automotive, construction and household appliances.In addition, the huge distribution lines they have and their huge variety of iron ore and coal mine portfolios allow them to effectively meet the level of demand. These characteristics make it the only steel distributor that truly markets its products globally.It is a company that is concerned about always providing the best service. For this reason it keeps on researching new technologies and solutions based on steel. In terms of technological development and innovation, they seek to reduce costs and improve production, trying to reduce the environmental impact.Its origin is relatively recent, as it is the product of the merger of Arcelor and Mittal Steel in 2006. Since then it has established and maintained its position as the steel company with the greatest global impact. It produces approximately 113 million tons of steel per year.
For some years now, the steel sector has been affected by a huge crisis. Despite being one of the world’s largest companies with the largest number of customers, Arcelor Mittal has not escaped unscathed. The cost of its shares has fallen significantly in recent years.In addition, due to the pandemic caused by Covid-19, worldwide demand for industrial products has decreased considerably. However, this situation favors investors who seek to take advantage of the low costs in the expectation that they will increase substantially in the future.With stock market swings being so unpredictable, it is impossible to calculate this with any certainty. However, as Arcelor Mittal is currently the largest steel company, it is expected to recover its value faster than its competitors.Buying Arcelor Mittal shares: AdvantagesTaking advantage of the opportunity to invest in Arcelor Mittal at the current low prices guarantees us a series of advantages that we need to study in order to know if our investment will provide the benefits we expect.
- The main advantage that Arcelor Mittal can offer us is its popularity and positioning in the market. This makes it the company most likely to overcome the crisis.
- It has great potential to emerge in the next inflationary cycle, thanks to the huge reserves it has to its name and its transportation channels. This will allow them to cover the post-pandemic demand for raw materials.
Buying Arcelor Mittal shares: DisadvantagesSince the stock market is so variable and unpredictable, it is advisable, before making any investment, to be aware of the risks that may arise.
- Due to the effect of the crisis in this market, Arcelor Mittal‘s level of debt is considerable.
- The evolution of this company also depends on the productivity of automotive and home appliance companies, etc. Therefore, if these companies stop, Arcelor Mittal‘s revenues will decrease.
- It has lost ground in Asia due to the rapid growth of competition in that continent.
Nowadays the purchase of shares is really simple and safe thanks to the numerous online brokers available. They allow you to buy as many shares as you want without having to pay exaggerated commissions.However, not all platforms are reliable, so you should choose the one that is properly regulated and certified.In this sense, one of the most popular, safe and easy to use brokers is eToro. This platform provides you with everything you need when buying shares, including a chart that allows you to see the evolution of the price of the shares you buy.On the other hand, this chart also helps us to analyze the future movements of the Arcelor Mittal company’s value. To use this platform you only need to register on it, which is extremely simple and free. This way you can start investing without restrictions.Another important broker that can be of great help to you is Plus500. This broker is also totally free and the commission percentage per transaction is really low. It is properly validated and certified, which guarantees the protection of your money.Registering with Plus500 is also really easy, and its use is focused on the purchase of shares, allowing you to be aware of any changes in the value of your investments in real time.
Making the decision to invest is not so easy due to the risk it may entail. In this sense, we recommend you to analyze certain aspects that may help you.First of all, it is necessary to look at the company’s share price chart in order to identify whether the company is growing or declining. In this way, we can analyze whether the fruits of our investment will appreciate in the short or long term.On the other hand, an important aspect is to know the financial status of the company. This is in order to try to estimate whether in the future the company will be able to increase or decrease its finances. To do so, it is necessary to study whether Arcelor Mittal will need to increase its capital, the cost of iron and the evolution of the competition.