U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.83 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.11 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.46
    +2.70 (+2.55%)
     
  • Gold

    1,812.90
    +5.60 (+0.31%)
     
  • Silver

    19.77
    -0.51 (-2.50%)
     
  • EUR/USD

    1.0426
    -0.0057 (-0.54%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • GBP/USD

    1.2103
    -0.0072 (-0.59%)
     
  • USD/JPY

    135.1750
    -0.5530 (-0.41%)
     
  • BTC-USD

    19,226.09
    -57.72 (-0.30%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    25,935.62
    -457.42 (-1.73%)
     

ArcelorMittal increases buyback program, sees global steel dip

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
FILE PHOTO: A steel roll is moved by the crane at the ArcelorMittal steel plant in Sestao
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Marine Strauss

BRUSSELS (Reuters) - ArcelorMittal reported higher-than-expected core profit in the first quarter on Thursday, but said it now forecast a slight contraction in global steel demand this year, with a sharp decline in the former Soviet Union countries.

The change in global steel demand in 2022 will be between 0% and -1%, the company said. For the Russia and Ukraine region, demand will be 10% lower.

The Luxembourg-based company also increased its buyback program for 2022 to $2.0 billion, from $1.0 billion previously completed.

The world's second-largest steelmaker said earnings before interest, tax, depreciation and amortisation were $5.08 billion, against the average forecast of $4.57 billion in a company-compiled poll.

"Market conditions are currently strong although we are now anticipating apparent steel consumption to contract slightly this year compared with 2021," CEO Aditya Mittal said in a statement.

The group said even if its results were overshadowed by the war in Ukraine and rising inflationary pressures, it benefited from higher average steel selling prices and higher iron ore prices.

"Nevertheless, it is clear that the longer-term fundamental outlook for steel is positive," he said.

(Reporting by Philip Blenkinsop, Marine Strauss; Editing by Bradley Perrett)