ArcelorMittal SA called for stronger trade measures to address a flood of Chinese steel exports that it says are making the market is unsustainable, with prices in Europe well below marginal costs.
Steelmakers have struggled to deal with a wave of cheap imports from China, where an anemic construction sector has weighed on prices. China produces more than 1 billion tons a year, well over half the world’s output, but there’s too much steel and too little demand in its domestic market.
The rest of the world risks becoming a dumping ground for excess Chinese production, cutting prices and driving plants out of business.
“The increased level of imports into Europe is a concern and stronger trade measures are urgently required to address this,” ArcelorMittal Chief Executive Officer Aditya Mittal said in a statement on Thursday.
Still, the world’s biggest steelmaker outside of China said it’s more optimistic about the second half of 2024 than a year earlier.
“Apparent demand is expected to be stronger in the second half of this year compared with 2023, and inventory levels are low, indicating that re-stocking will occur when real demand recovers,” the CEO said.
ArcelorMittal reported third-quarter earnings before interest, taxes, depreciation and amortization of $1.58 billion, beating analysts’ estimates of $1.47 billion.
