ArcelorMittal firmed up its previous forecast for steel consumption in 2016 to 0.5 percent from the zero to 0.5 percent range. Although the steelmaker is forecasting growth in China, it has cut its forecast for growth of consumption in the US and Brazil.
During today’s conference call, Aditya Mittal commented, “We believe the Brazilian market has bottomed out and the worst is behind us.”
The sentiment is expected to begin moving volume and pricing domestically in fourth quarter 2016. Earnings at ArcelorMittal’s Brazilian division fell by almost 4 percent year-on-year in the third quarter of 2016, but Brazil’s flat steel prices are already looking up 5 percent in November. In regards the US he commented, “US flats and longs are also recuperating.”