ArcelorMittal marked its 20th anniversary with a video message from Executive Chairman Lakshmi Mittal, emphasizing the company's resilience and strategic evolution since the merger of Mittal Steel and Arcelor in 2006. The address was delivered to attendees at the World Steel Dynamics annual Global Steel Dynamics Forum 2026 in New York. Mittal highlighted the company's ability to navigate major global shifts, including the financial crisis, the COVID-19 pandemic, and the rise of China's steel industry.

Reflecting on the past two decades, Mittal noted that the merger created a stronger, more resilient business with the scale, diversification, and reach to adapt to a faster-moving and more complex operating environment. He pointed out that the industry now faces greater technological change and increased competition, requiring real-time adaptation and a focus on environmental constraints.

Looking ahead, Mittal expressed confidence in the long-term outlook for steel, underpinned by demand from emerging markets such as India, infrastructure renewal in developed economies, and the energy transition. He underscored the growing role of domestic industrial policy and the importance of maintaining a strong, competitive steel industry. Mittal also highlighted India's potential, citing massive infrastructure expansion, rapid urban housing growth, and energy transition infrastructure as key drivers.

Financial and Operational Highlights

ArcelorMittal reported strong operational performance in 2025, with significant production and revenue figures. The company operates in 60 countries, with primary steelmaking operations in 14 countries, and is the largest steel producer in Europe.

The company sells its products to diverse industries, including automotive, engineering, construction, and machinery. ArcelorMittal is listed on multiple stock exchanges, including New York (MT), Amsterdam (MT), Paris (MT), and Luxembourg (MT).

Three of Europe's leading steelmakers, ArcelorMittal Europe, thyssenkrupp Steel and voestalpine, have issued a joint call for urgent reform of the EU Emissions Trading System (ETS). The companies warn that without pragmatic adjustments, the current policy trajectory risks destroying Europe's industrial base. They estimate that without reforms, the EU could face a 30–40% decline in steel-intensive manufacturing activity, putting up to 5 million jobs at risk across the value chain.

Together, the three companies represent around 60% of Europe's integrated steel production. While they have committed to decarbonising their operations, they stress that the policy framework must enable, not inhibit, these transformations. The companies argue that key enablers for economic decarbonisation, such as competitive electricity prices, affordable green hydrogen and Carbon Contracts for Difference, remain insufficiently developed or unavailable at scale.

Rising costs and economic risks

Under the current EU ETS framework, the cost of producing steel in the EU is expected to increase by around 50% by the early 2030s. The companies note that steel-intensive imports are not subject to an equivalent carbon cost, while EU steel exports receive no rebate to recover the carbon cost. This imbalance poses a profound threat to European steelmaking and the broader value chain.

The companies highlight that the ETS has driven emissions reductions in the power sector by about 49% between 2005 and 2023. However, they assert that it is not yet delivering a viable pathway for energy-intensive industries such as steel. They argue that the current system runs counter to the EU's ambition, as set out in the Industrial Accelerator Act, to increase manufacturing's share of GDP to 20%.

Calls for a pause in ETS cost escalation

ArcelorMittal, thyssenkrupp Steel and voestalpine have outlined specific measures to address the situation. They are calling for a temporary pause in ETS cost escalation, maintaining the current level until the key enablers of economically viable decarbonisation are in place. Additionally, they want a framework that ensures first movers are supported, with ETS revenues directed toward industrial decarbonisation.

The companies also seek a balanced approach to import and export competitiveness to address the unintended consequences of the current system. While acknowledging the recent introduction of the Carbon Border Adjustment Mechanism (CBAM) and upcoming Tariff Rate Quotas as important steps, they stress that ETS reform is essential to ensure Europe can both decarbonise and maintain a strong industrial base.

Executive perspectives

Marie Jaroni, CEO of thyssenkrupp Steel, said the ETS needs a reality check as it does not reflect the current state of Europe's industry. She emphasised the need for a cost pause to safeguard the transformation and ensure that first movers are not put at a disadvantage.

Herbert Eibensteiner, CEO of voestalpine AG, noted that the phase-out of free allocation is already diverting financial resources needed for the decisive phase of transformation. He stated that a pause in the ETS framework is essential to safeguard investments and enable further decarbonisation steps.

Lakshmi Mittal, executive chairman of ArcelorMittal, said a future for the ETS that incentivises decarbonisation without compromising competitiveness must be found. He added that the choice policymakers face is between a climate strategy that strengthens Europe's resilience and economic security, and one that hollows it out.