ArcelorMittal still expects 3-4% steel demand growth this year, excluding China

(Reuters) -ArcelorMittal, the world’s second-largest steelmaker, on Thursday reiterated it expects global steel demand outside China to grow 3-4% this year as it reported first-quarter earnings ahead of analyst expectations.

Economic sentiment appears to have reached a floor and given the low inventories, particularly in Europe, as soon as real demand begins to gradually improve, apparent demand is expected to rebound, it said in a statement.

The steel industry has been suffering from weaker construction activity in Europe and problems in the real estate sector in China, the world’s top consumer and producer of the metal. In the U.S., interest rate hikes have dented demand.

Steel demand in Europe, which has been challenged by high inflation and tighter monetary policy, is expected to show very modest growth this year before a 5.3% projected gain in 2025, the World Steel Association said last month .

The Luxembourg-based company said its first quarter core profit (EBITDA) was $1.96 billion, higher than the average forecast in a company poll of $1.81 billion, but lower than a year before.

Profit growth in the quarter was primarily driven by improved results in North America, Brazil, Europe, India and from its joint ventures, offset by lower mining segment results, the company said.