ArcelorMittal has upgraded its global apparent steel consumption growth forecast for 2021 to 7.5-8.5% on-year from the previous 4.5-5.5%, with capacity expenditure guidance also up to $3.2 billion. Owing to the ArcelorMittal Italia deconsolidation, the group’s shipments inched down 2% on-quarter in the second quarter to 16.1 million tonnes, but earnings were the highest since 2008.

Crude steel output rose 1% on-quarter in Q2 to 17.8mt, Kallanish notes.

Excluding the shipments of ArcelorMittal Italia, sales increased 2.4% in Q2, as economic activity continued to recover.

Revenue rose 19% on-quarter in Q2 to $19.3 billion due to higher steel prices, offset partly by lower mining revenue due to a four-week strike at AMMC. Net income attributable to equity holders of the parent surged 75% to $4.01 billion. Ebitda was up 56% to $5.05 billion, and compared to only $707 million a year earlier.

Steel shipments in the first half of 2021 thus fell 5% on-year to 32.6mt, with crude steel output flat at 35.4mt. However, adjusted for ArcelorMittal Italia and the Cleveland Cliffs sale last December, deliveries rose 13%. Revenue grew 38% to $35.5 billion and net income attributable to equity holders of the parent was $6.29 billion versus a year-earlier loss of $1.68 billion.

ArcelorMittal chief executive Aditya Mittal says: “The second quarter has seen a continued strong recovery backdrop alongside a sustained lean inventory environment. This resulted in even healthier spreads in our core markets than in the first three months of the year, supporting the best quarterly and half year result we have reported since 2008.”