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ArcelorMittal warns of trade disruption despite strong quarterly profit
ArcelorMittal shipped about 13.6 million tons of steel in the first quarter, slightly up from the year-ago period
Reuters
ArcelorMittal, the world's second-largest steelmaker, reported first-quarter core profit above market expectations on Wednesday, helped by a strong performance in Liberia, despite geopolitical challenges.
The Luxembourg-based company reported quarterly earnings before interest, taxes, depreciation and amortisation (Ebitda) of $1.58 billion, beating analysts' consensus estimate of $1.55 billion provided by the company.
ArcelorMittal shipped about 13.6 million tons of steel in the first quarter, slightly up from the year-ago period.
In Liberia, the group achieved record iron ore production at 8.4 million tons and shipped some 8 million tons of iron ore in the quarter, up 29.2 per cent and 27 per cent year-on-year respectively, driven by operational improvements.
Delays in resolving trade disruptions could weigh on the group's initial 2025 steel consumption forecasts particularly for the US and China, the group said.
The group previously said it expected 2025 global steel demand growth of 2.5 per cent to 3.5 per cent, excluding China, the world's top consumer and producer of the metal.
ArcelorMital's steel outlook comments echoed Swedish peer SSAB, which said it expects a more uncertain outlook for its steel divisions due to tariffs.
Still, the group said steel spreads in Europe have rebounded from unsustainably low levels, with the outlook bolstered by the European Commission's Steel and Metals Action Plan.
ArcelorMittal reaffirmed its 2025 capital expenditure outlook, maintaining its investment forecast in the range of $4.5 billion to $5.0 billion for the year.
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