(Reuters) -ArcelorMittal, the world’s second largest steelmaker, on Thursday forecast improving steel demand for 2025 and said its capital expenditures would be similar to last year’s, after its fourth quarter earnings exceeded market expectations.
“The long-term outlook for the steel industry is positive and our global presence means we have a unique opportunity to prioritize investment in markets where there is a strong outlook for growth and returns,” CEO Aditya Mittal said in a statement.
The Luxembourg-based company expects to invest between $4.5 billion and $5.0 billion this year, in line with its 2024 plans. Mittal said the primary focus for investments would be in Brazil, India and the United States.
In a separate statement, it said it would build a new steel plant in Calvert, Alabama.
ArcelorMittal expects global steel demand growth to be between 2.5% and 3.5% in 2025 excluding China, the world’s top consumer and producer of the metal.
The company reported a 13% rise in its quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) to $1.65 billion, a nearly 8% beat to analysts’ consensus of $1.53 billion provided by the company.
Its Swedish peer SSAB last week also topped fourth quarter profit expectations, buoyed by resilient demand for its high-strength steel.
ArcelorMittal shipped some 13.5 million metric tons of steel in the quarter, slightly up from the same period in 2023 and from the third quarter.
(Reporting by Anna Peverieri and Johan Bodinier in Gdansk; Editing by Milla Nissi)
