# ArcelorMittal cuts steel demand forecast, beats profit expectations
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-07-27
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: ArcelorMittal Cuts Steel Demand Forecast, Beats Profit
Meta Description: ArcelorMittal, the world’s second-largest steelmaker, lowers shipment forecast but exceeds profit expectations. Global demand to grow 1%-2% excluding China.
URL: https://financedigest.com/arcelormittal-cuts-steel-demand-forecast-beats-profit-expectationshtml

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# ArcelorMittal cuts steel demand forecast beats profit expectations

By Marine Strauss

BRUSSELS (Reuters) -ArcelorMittal, the world’s second-largest steelmaker, lowered its steel shipments forecast on Thursday for this year, as it reported second-quarter earnings that exceeded expectations.

The group said global steel demand excluding China is expected to grow 1% to 2% this year, down from a previously forecast range of 2-3%, due to higher U.S. interest rates and weak construction activity in Europe.

“We have delivered a strong set of financials in the first half of the year, which reflect the improved market conditions and also the positive impact of recent strategic acquisitions,” Aditya Mittal, ArcelorMittal’s CEO, said in a statement.

ArcelorMittal [shares were up 1.93% to 26.14 euros](https://www.financedigest.com/asia-shares-subdued-yen-shunned-as-euro-shines.html "Asia shares subdued, yen shunned as euro shines") as of 09:43 a.m. CET (0743 GMT)

“ArcelorMittal has lowered its expectations for global steel consumption to +1%-+2% from +2%-+3%, mainly due to softening of market conditions in the US, Europe and Brazil, but this seems already fairly reflected in FY EBITDA consensus of $7.7 billion, which implies a 25% sequential decline in 2H23,” ING analyst Stijn Demeester said in a note.

The Luxembourg-based company reported second-quarter core profit of $2.6 billion, half of the year-ago figure and slightly higher than the average forecast of $2.5 billion in a company poll.

“We remain relatively optimistic on relative steel consumption in our core markets for 2023,” Genuino Christino, ArcelorMittal’s CFO told reporters. He said uncertainties remained for the rest of year, with a [number of challenges](https://www.financedigest.com/why-challenger-banks-need-to-capture-the-hearts-and-minds-of-todays-consumers-to-become-the-number-one-choice-in-the-retail-banking-sector.html "Why challenger banks need to capture the hearts and minds of today’s consumers to become the number one choice in the retail banking sector") ahead.

ArcelorMittal reported a weaker mining performance impacted by lower iron ore production, shipments and higher freight costs. It said [inventories remain low](https://www.financedigest.com/chinas-low-copper-inventory-data-belie-sufficient-supply.html "China’s low copper inventory data belie sufficient supply") in core markets.

(Reporting by Marine StraussEditing by Kim Coghill, David Goodman and Bernadette Baum)


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