ARCELORMITTAL, the world’s largest steelmaker, yesterday forecast an improvement in the first half of 2012 from a weak end to last year, with a clear pick up in North America but still concerns about Europe.
The company, which makes around seven per cent of global steel, said yesterday steel shipments would return to the level seen at the start of last year and its mining output would continue to grow.
Prices were recovering, but still below year-ago levels.
Core profit at an Ebitda level in the first six months would be lower than a year earlier, but above the level in the second half of 2011, ArcelorMittal said.
“We see an increase in shipments and in prices in Q1 both in Europe and the United States and so the steel market is better than in the second half of 2011,” finance chief Aditya Mittal said.
“The economic situation in Europe does remain a live concern, but we are seeing an improvement in sentiment compared with the fourth quarter,” he said on a conference call.
Mittal said global steel demand was expected to rise by 4.6 per cent this year, with a contraction of 1.3 per cent in Europe.
The company said core profit in the fourth quarter fell 29 per cent to $1.71bn.
However, it did slip into an unexpected loss – of $1bn – in the quarter, due to impairment and restructuring charges for idling European operations and a big tax hit.
