ArcelorMittal Expects Modest Steel Demand Pick Up in 2020

SEATTLE (Scrap Monster): ArcelorMittal foresees pick up in steel demand, especially in major markets, during the current year. Meantime, the company’s global operations reported core profits exceeding expectations in the final quarter of 2019.

According to Lakshmi Mittal, CEO, ArcelorMittal, major markets including Europe, the U.S. and Brazil have started to show signs of improvement. He admitted that 2019 was a tough year for the company. Incidentally, the steelmaker reported a loss of $2.45 billion in 2019, as compared with net income of $5.15 billion in 2018. The net debt, at $9.3 billion, hit the lowest levels since 2006.

Commenting on the $6 billion acquisition of Essar Steel India in partnership with Nippon Steel, Mittal noted that the deal will help the company to take advantage of the projected boom in steel demand in India. The company is in the final phase of discussions with the Italian government authorities with regards to the future of Ilva steelworks.

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The company’s Chinese operations are likely to have minimal impact from coronavirus infection. The mills have been operating at reduced rates on account of extended new year. However, the steel demand in the country is projected to record marginal growth by 1% in 2020.