ArcelorMittal has given positive signals for the health of the global steel market for the rest this year in its outlook and guidance presented as part of its third quarter 2014 operating results. The steelmaker expects global apparent steel consumption to increase in 2014, particularly in the U.S. market. The company itself saw its own financial performance continue its year-on-year improvement with double digit % Ebitda increases, Kallanish notes.

Based on the current economic outlook, ArcelorMittal continues to expect global apparent steel consumption (ASC) to increase by approximately 2.25-2.75% in 2014. Steel demand in the US has been strong and US ASC growth in 2014 has been upgraded to a forecast range of 8.25-8.75%, the steelmaker says.

In its own backyard, the company has continued its year-on-year improvement in performance. Q3 14 sales increased by 5.9% y-on-y to $20,067 million while year-to-date sales to end September rose by 1.6% to $60,559m. Earnings too have grown, with Ebitda increasing by 8.1% y-on-y and by 11.2% quarter-on-quarter to $1905m.  

This means that the group has posted a net income for the second successive quarter. Profit of $22m, whilst less than that seen in Q2 14 ($52m), compares favourably to a net loss of -$193m in Q3 13.

“This quarter’s results show the considerable improvement in our steel business which has more than offset the fall in the iron ore price…”, ceo Lakshmi Mittal says.

The company’s steel business saw crude steel production grow y-on-y in NAFTA and Brazil in Q3, but reduce in Europe and the Africa/CIS segment. Overall ArcelorMittal produced 23.9 million tonnes of crude steel in Q3, 2.6% up y-on-y. Steel sales values surged y-on-y in the U.S. in Q3 by 13.5% although Ebitda upticked only slightly to $429m. In Europe meanwhile, sales actually fell slightly y-on-y but Ebitda improved by 72.6% y-on-y to $523m (see related article).

Iron ore output was also up on Q3 13 by 6% to 15.8mt. The tonnage of iron ore shipped at market price rose by 4.2% to 10mt. Iron ore sales value fell however by just over 20% y-on-y to $1272m.

“I do not foresee a deterioration in our performance in the fourth quarter. As a result we are well placed to achieve full year EBITDA in excess of $7.0 billion”, Lakshmi Mittal concludes.