ArcelorMittal, the world's second-biggest steelmaker, reported stronger-than-expected second-quarter earnings on Thursday, helped by soaring prices, but it faces threats from spiral inflation, the Ukraine war and lockdowns China due to COVID-19.
The Luxembourg company did not give a specific forecast, but indicated downside risks.
Inflationary pressures represented a significant headwind, the company said, with a slowdown in real demand exacerbated by destocking.
Steel prices have fallen faster than raw material prices.
Gas supply issues in Europe and COVID-related lockdowns in China were additional risks.
ArcelorMittal said it is well positioned to manage gas supply risk as it has sites in nine European countries, meaning it can meet market demand.
He has also taken steps to reduce gas consumption in his blast furnaces, for example by enriching it with oxygen.
Company reports second-quarter EBITDA of $5.16 billion, above analysts' forecast of $5.09 billion in a survey conducted by the company.
ArcelorMittal's April-June steel shipments were down 9.9% year-on-year, mainly due to the impact of the war in Ukraine, but sales were up as the average selling price rose 30.8%.
