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ArcelorMittal SA says steel exports from China making business unsustainable

Writer's picture: 90.6 FM News90.6 FM News

VAAL TRIANGLE - ArcelorMittal SA said exports from China left the steel market in an unsustainable position, as the world’s biggest producer outside of the Asian country reported a fall in second-quarter profit. ArcelorMittal said in a statement on Thursday that current market conditions are unsustainable and that China’s excess production relative to demand is resulting in very low domestic steel spreads and aggressive exports; steel prices in both Europe and US are below the marginal cost. Business Standard reports steel producers in the US and Europe are being squeezed between a fresh wave of cheap imports and anemic demand that’s pushing prices lower. The surge in exports has come as demand for steel is growing more slowly that ArcelorMittal had expected. The company lowered its forecast for apparent consumption of steel outside of China to between 2.5% and 3% this year. It had originally expected demand to grow as much as 4% this year. According to ArcelorMittal, steel consumption in China could even contract, which lowered its 2024 forecast to a range of -1% to +1%.

PHOTO: (Supplied)


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