ArcelorMittal, the world’s second largest steelmaker, reported quarterly earnings that narrowly exceeded market expectations but revised down its forecast for global steel demand, citing weaker US consumption and ongoing trade disruptions.
As per Reuters, the company posted core earnings (EBITDA) of $1.86 billion for the second quarter of 2025, just ahead of the $1.85 billion consensus compiled by the company. The performance was supported by a favourable price-cost dynamic in Europe and increased contributions from its operations in India.
In a statement, the Luxembourg-based group said it now expects global steel demand growth outside China to range between 1.5 per cent and 2.5 per cent this year, down from a previous forecast of 2.5 per cent to 3.5 per cent issued in February.
The downgrade follows the continued impact of US trade measures, including a 25 per cent tariff on most imported steel and aluminium introduced in March and subsequently raised to 50 per cent in June. ArcelorMittal said these measures, combined with subdued economic activity, were weighing on apparent steel consumption in the US, which is now expected to remain flat or decline by up to 2 per cent in 2025. The earlier forecast had projected growth of 1 per cent to 3 per cent.
European demand more resilient
The company noted that European steel demand was holding up more steadily, supported in part by lower interest rates. However, it still revised its forecast for the region’s 2025 apparent steel consumption growth to between -0.5 per cent and +1.5 per cent, reflecting limited tariff-related impacts.
These comments contrast with more cautious views expressed by other European steelmakers, including Acerinox and SSAB, which have reported weaker demand, elevated inventories and increased uncertainty linked to trade barriers.
ArcelorMittal shipped 13.8 million tonnes of steel in the second quarter, marginally lower than the same period last year but up 1.4 per cent from the first quarter of 2025. The company also reiterated its plan to invest between $4.5 billion and $5.0 billion this year, with spending focused primarily in Brazil, India and the United States.
