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Iron ore spot prices reached a low at the end of December 2015 of 3850 per tonne In the second half of 2016 coking coal prices rose sharply and suddenly largely driven by a sharp drop in Chinese domestic coking coal production as well as maintenance and operational production issues in Australian coking coal mines during the period
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Protracted low iron ore and steel prices would have a material adverse effect on ArcelorMittal''s results as could price volatility ArcelorMittal sells both iron ore and steel products Protracted low iron ore prices have a negative effect on the results of its mining business as a result of lower sale prices and lower margins on such sales
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As in other European countries Spain or Italy the incentive scheme raised sufficient concern Arcelor Mittal took into consideration closure of business in Romania and Europe due to high energy prices so as to be reassessed and modified following major complaints about increase in electricity pricing determined by the green certificates
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