ArcelorMittal, the world’s second-largest steelmaker, on Thursday, forecasted improving steel demand for 2025 and said its capital expenditures would be similar to last year’s after its fourth-quarter earnings exceeded market expectations.
“The long-term outlook for the steel industry is positive and our global presence means we have a unique opportunity to prioritise investment in markets where there is a strong outlook for growth and returns,” CEO Aditya Mittal said in a statement.
The Luxembourg-based company expects to invest between $4.5 billion and $5.0 billion this year, in line with its 2024 plans. Mittal said the primary focus for investments would be in Brazil, India and the United States.
In a separate statement, it said it would build a new steel plant in Calvert, Alabama.
ArcelorMittal expects global steel demand growth to be between 2.5% and 3.5% in 2025, excluding China, the world’s top consumer and producer of the metal.
The company reported a 13% rise in its quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) to $1.65 billion, a nearly 8% beat to analysts’ consensus of $1.53 billion provided by the company.
Last week, Its Swedish peer SSAB also topped fourth-quarter profit expectations, buoyed by resilient demand for high-strength steel.
ArcelorMittal shipped some 13.5 million metric tons of steel in the quarter, slightly up from the same period in 2023 and from the third quarter.