(Reuters) – ArcelorMittal, the world’s second-largest steelmaker, said on Thursday it expects global steel demand outside China to rise 3% to 4% in 2024 from 2023, citing signs of improvement as the destocking phase is reaching maturity.
ArcelorMittal also reported fourth-quarter EBITDA – the most closely watched metric by the market – of $1.27 billion, higher than analysts’ average forecast of $1.20 billion according to a consensus compiled by the business.
The stock gained 2.8% at 09:32 GMT, after having increased by up to 5.1%. The Stoxx 600 nibbled 0.23% at the same time.
The steel sector has suffered from a slowdown in construction activity in Europe and problems in the real estate sector in China, the world’s largest consumer and producer of the metal. In the United States, interest rate increases weighed on demand.
“We are seeing a good recovery in prices in Europe,” noted the group’s financial director, Genuino Christino, during a conference call with journalists.
Last week, Swedish peer SSAB reported a smaller-than-expected fall in fourth-quarter profit as steel prices in Europe recovered towards the end of the year.
In China, steel consumption is expected to be stable, with government stimulus measures likely offsetting weakness in the property market.
The steelmaker recorded a net profit of $4.87 billion for the full year, including a charge of $2.4 billion related to the sale of operations in Kazakhstan and an impairment of $1.4 billion. dollars from Acciaierie d’Italia in Italy.
The impact on the group of disruptions to maritime trade is not significant, despite increases in insurance premiums.
“The most positive impact for our business is that the reluctance to import raw materials is growing,” Genuino Christino said.
(Reporting Diana Mandiá and Matteo Allievi; French version Nathan Vifflin and Corentin Chappron, edited by Blandine Hénault and Kate Entringer)
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