ArcelorMittal Sees Rosier Steel Outlook Despite Coronavirus - Bloomberg: ArcelorMittal shares jumped after the company said it’s more optimistic on the outlook for steel demand this year and expects the effect of the coronavirus outbreak in China will only be felt in the short term.
The steel industry was hard hit in 2019 by slumping demand from automakers, trade wars and sluggish
economies in Europe. While prices edged higher in the past two months, there’s concern the deadly
virus will hurt consumption and throttle the industry’s nascent recovery.
ArcelorMittal rose as much as 11% in Amsterdam, the most since April 2016.
“There are signs that the real demand slowdown is beginning to stabilize,” the company said in its
annual results statement. For now, “the coronavirus will likely have a short-term negative demand
impact in China and to a lesser degree elsewhere.”
The largest steel producer is more optimistic on demand
ArcelorMittal shares jump 11%, the most since April 2016/
Overall, ArcelorMittal expects global steel demand -- a barometer of economic growth -- to grow by 1% to 2% this year after expanding 1.1% in 2019.
“The supportive inventory environment means that we are more optimistic on the apparent demand
outlook for 2020,” the company said.
