Steel manufacturer ArcelorMittal has raised its global apparent steel consumption (ASC) guidance to 4.5-5.5pc, with the maximum growth expected in India at 16-18pc, which will likely increase the overall ex-China world usage to 8.5-9.5pc.
Consumption in the US is also expected to grow in the double-digits with ASC in this country increasing to 10-12pc this year on strong demand for flat products. Europe’s consumption is expected to grow by 7.5-9.5pc, Brazil’s by 6-8pc, and CIS by 4-6pc. Consumption in China will increase by around 1-3pc this year.
Reporting its first-quarter results of the year on Thursday, ArcelorMittal indicated that its steel shipments trended flat at 16.5mn mt in Q1 2021 compared to the same quarter last year. Taking shipments from ArcelorMittal USA, which was sold to Cleveland Cliffs earlier this year, the company said its quarterly shipments increased by 6.5pc from 15.5mn mt in Q4 2020. Adjusting for ArcelorMittal USA’s sale, however, saw shipments declining by 4.6pc.
Shipments in Europe grew by 5.2pc, were up in Brazil by 11.4pc, and increased in the CIS and North America by 9.3pc and 7.3pc, respectively. Shipments in North America were calculated excluding the shipments of ArcelorMittal USA.
Higher steel prices led to an increase in revenue for the company. In Q1 2021, ArcelorMittal’s revenue increased by 9.1pc to $16.2bn compared to 14.8bn in the same quarter last year and 14.2bn in Q4 2020. The company also attributed the surge in revenue to increased mining sales revenue due to high iron ore prices, which offset the negative impact of ArcelorMittal USA’s sale.
The company’s operating income increased to $2.6bn in Q1 against a loss of $353mn last year and an income of $2bn in Q4 2020. Its net income rose in the first quarter to $2.2bn compared to a net loss of $1.1bn in Q1 2020 and $1.2bn in Q4 2020.