The world's largest steel producer, Luxembourg-based ArcelorMittal said on Thursday that it raised its forecast for global steel consumption growth this year to 7.5-8.5 % from 4.5-5.5% previously.
According to ArcelorMittal, current policy changes in China to contain inflation and a focus on decarbonization could have long-term positive effects on the global steel industry outside of China.
The company notes its best quarterly profit in 13 years, driven by strong demand for steel and low dealer inventories, which has led to an increase in steel shipments from its mills, although improved steel spreads have not yet fully reflected in the group's results due to backlog delays.
ArcelorMittal reported that second-quarter EBITDA, the metric most monitored by market participants, was $ 5.1 billion, nearly seven times the $ 700 million a year earlier and above average. analysts' forecast of $ 4.7 billion according to a survey of the company.
The company said it will begin a $ 2.2 billion buyback program on August 2 and will complete it by the end of 2021. Earlier, ArcelorMittal promised to return proceeds from canceled Cleveland Cliffs preferred shares and provide an advance part of the estimated shareholder return for 2022.