(Reuters) -ArcelorMittal, the world’s second largest steelmaker, reported quarterly core profit slightly above market expectations on Thursday, but trimmed its forecasts for steel demand due to U.S. President Donald Trump’s tariffs.
The Trump administration rolled out some of its first trade measures with a 25% tariff on most imported steel and aluminium in March. It doubled the rate to 50% for most countries in June.
The Luxembourg-based company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) were $1.86 billion in the second quarter, just above analysts’ consensus estimate of $1.85 billion provided by the company.
The quarterly results were helped by a positive price-cost effect in Europe, where improved selling prices outpaced input cost increases, and a higher contribution from India, it said.
However, ArcelorMittal cut its annual forecast for global steel demand outside of China, citing weaker U.S. consumption and trade disruptions.
It sees growth of 1.5% to 2.5% in global steel demand this year excluding China, which is the world’s top consumer and producer of the metal, compared with the forecast of 2.5% to 3.5% it had given in February.
ArcelorMittal said tariff concerns and subdued economic activity had dampened demand in the U.S., where apparent steel consumption was expected to stay unchanged or decline by up to 2% in 2025. It had previously forecasted growth of 1% to 3%.
It said European demand was holding up better than in other regions, but trimmed its 2025 forecast for apparent steel consumption growth to between -0.5% and +1.5%, from a previous range of 0% to 2%. The revision reflects limited tariff impacts and support from lower interest rates, it said.
(Reporting by Anna Peverieri in Gdansk, editing by Milla Nissi-Prussak)
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