ArcelorMittal projects slight steel demand growth

Worldwide – Leading steelmaker ArcelorMittal expects global apparent steel consumption to increase by between 0.5% and 1.5% this year.

The pick-up in European manufacturing activity is projected to deliver demand growth of 1.5-2.5% in the region whereas last year’s 11% upturn in the USA is thought likely to be followed by an apparent steel consumption decline of between 2% and 3% this year as a result of destocking.

Owing to a ‘weak macro backdrop’, both the CIS and Brazil are expected to register an apparent consumption loss of between 5% and 7% for the current year. And despite signs of stabilisation in China resulting from the government’s targeted stimulus, the country’s real estate market remains weak and is likely to help limit steel demand growth to 0.5-1.5% this year.

These projections were made as ArcelorMittal revealed its results for January-March 2015. Chairman and ceo Lakshmi N. Mittal confirmed: ‘We faced a number of headwinds in the first quarter, including a declining iron ore price, a stronger dollar and a surge of imports in the United States.’