ArcelorMittal has again reduced its outlook for global demand in 2019. This is mainly due to the persistent uncertainties in key markets such as Europe and despite a better-than-expected performance in Chinese demand.

In its second quarter financial results, the company explains that it expects apparent demand this year to only grow by 0.5-1.5% year-on-year. This is down from the previous assessment of 1-1.5% growth y-o-y.

For Europe the group remains concerned about the decline in automotive demand and has hence lowered its outlook to a reduction in apparent demand of as much as -2% y-o-y in 2019. Only three months ago ArcelorMittal expected demand to fall by a maximum of -1% y-o-y.

The outlook issued by the largest steelmaker in the world is more negative than those published back in April by worldsteel (globally) and last month by Eurofer (for Europe).

While the company acknowledges the better-than-expected performance by Chinese demand in this first part of 2019, it has nevertheless reduced its demand outlook for the US (0-1% recovery) and Brazil (1.5-2.5% recovery).

For Brazil, in particular, ArcelorMittal remains concerned because of the delays in infrastrcture spending and of the impact of the ongoing Argentine recession on steel demand there.