The forecast for steel demand in China this year is +0-2% per year
Global steelmaker ArcelorMittal expects global demand for steel to grow by 3-4% in 2024, excluding China, compared to 2023. This forecast was published in the company's financial report for 2023.
The company's forecast is based on an improvement in the global steel market as the inventory release phase nears completion.
At the same time, demand growth is limited due to weak construction activity in the European Union and rising interest rates in the United States, which negatively affects domestic steel consumption. In China, the world's largest consumer of iron ore and steel, the steel industry suffers from ongoing problems in the real estate sector.
“However, looking to the future, there are already preliminary signs of a more constructive outlook for the industry,” said ArcelorMittal CEO Aditya Mittal.
According to the company, in 2024, inventory levels will not fall under the pressure of slowing demand, observed in 2023 in both Europe and the United States. In China, steel consumption will remain stable as government stimulus measures are expected to offset weakness in the property market.
ArcelorMittal expects steel demand to grow 1.5-3.5% in the US in 2024, 2-4% in the EU, 0.5-2.5% in Brazil and 6.5-8.5% in India . China will see the lowest demand recovery – 0-2%.
As previously reported by Compraço, ArcelorMittal reduced steel production by 1.5% in 2023 compared to 2022, to 58.1 million tonnes. Iron ore production last year decreased by 7.3% per year – to 42 million tons.
The company's net profit for the year decreased by 54.1% year over year – to $4.87 billion. EBITDA totaled US$7.56 billion (-46.6% y/y), operating profit – US$2.34 billion (-77.2% y/y) and revenue – US$68.27 billion (- 14.5% y/y).
