Goldman Sachs upgraded ArcelorMittal (MT) to Buy from Neutral with a price target of $31.70, up from $29. The firm expects declining iron ore and met coal prices due to oversupply, which it believes should provide cost support, aiding to ArcelorMittal’s steel spreads and margins. This, coupled with potential for reduced steel exports from China and mounting political pressure for effective safeguard mechanisms in key markets may provide additional pricing support with scope to improve utilization rates if imports are displaced by domestic production, the analyst tells investors in a research note.
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