Strong steel prices helped ArcelorMittal post in the third quarter its highest net income and lowest net debt since 2008. Prices have since come off record highs but remain elevated, which will be reflected in 2022 annual contracts, the firm observes.

The steelmaker maintains its 12-13% on-year growth forecast for 2021 global apparent steel consumption outside China, but its forecast for China has weakened. It now expects demand in the Asian giant to contract slightly. However, strict production constraints are expected to lead to lower Chinese net exports in the second half of 2021, thereby limiting the impact on the global market.

ArcelorMittal’s consolidated third-quarter crude steel production was flat on-year at 17.2 million tonnes, but it slid 3% on-quarter. Steel shipments meanwhile dropped 17% on-year and 9% on-quarter to 14.6mt. The on-quarter drop was due to weaker demand, particularly from automotive, as well as production constraints and order shipment delays which are expected to reverse in Q4.

In the nine months through September, steel shipments fell 9% on-year to 47.2mt, while crude steel output was flat at 52.6mt. Sales rose 43% to $55.8 billion and net income was $10.9 billion versus a $1.94 billion loss a year earlier.