ArcelorMittal, the world’s largest steelmaker, reported slightly lower-than-expected third-quarter earnings on Thursday after what it said was its strongest quarter in more than a decade.
The company said it expects global steel demand to grow by between 12 per cent and 13 per cent this year, excluding China, where real demand has weakened. Arcelor now expects a slight contraction in Chinese steel demand in 2021, it said, citing the country's real estate sector.
Third-quarter core profit (EBITDA), the figure most watched by the market, showed about a six-fold increase from the same period last year at $6.06 billion, slightly lower than the average forecast of $6.15 billion in a company poll.
It was the strongest quarter since 2008 and up 19.9 per cent from the previous three-month period, the company added.
"Our third-quarter results were supported by the continuing strong price environment, resulting in the highest net income and lowest net debt since 2008," CEO Aditya Mittal said in a statement.
"Despite the volatility we continue to see as a result of the ongoing presence and repercussions of Covid-19, this has been a very strong year for ArcelorMittal."
The group said net debt declined to $3.9 billion, the lowest since 2006 and down from $5 billion at the end of the previous quarter.