ArcelorMittal sees global steel demand rising as cycle turns

Source: Reuters

ArcelorMittal SA expects global steel demand to rebound this year, driven by a recovery in economies from China to Europe.

Apparent consumption of steel — a key barometer of the world economy — is projected to increase 2% to 3% in 2023, after contracting in key regions last year, the company said Thursday in a statement.

Demand in China should stabilize — expanding or contracting by as much as 1% — after the removal of coronavirus restrictions, while Europe’s buying will be higher as the energy crisis abates.

“As we look ahead, evidence suggests that the customer destock we saw in the second half of 2022 has peaked, hence providing support to apparent steel consumption and steel spreads,” ArcelorMittal Chief Executive Officer Aditya Mittal said in the statement.

The world’s biggest steelmaker outside of China saw earnings before interest, taxes, depreciation and amortization drop to $1.26 billion in the final quarter of 2022, after a slump in demand forced it to idle some European capacity. That was slightly higher than analyst estimates. Lower prices and high energy costs, driven by the war in Ukraine, also eroded its margins.