Global steel consumption will grow by 4.5-5.5% in 2021

ArcelorMittal, the world's largest steel company, predicts global steel consumption will grow 4.5-5.5% in 2021, or 8.5-9.5%, excluding China.

“The quarterly results reflect a very positive market environment. Demand is back higher than we expected, with high supply chain inventories following significant temporary production cuts last year. (…) This year we expect a rapid recovery in steel demand. We estimate that global demand in 2021 will be 4.5-5.5% (8.5-9.5% excluding China). Of course, it is critically important that we be able to take advantage of such a stable market environment ”, - said in the address of the CEO of the company Aditya Mittal to employees at the end of the first quarter of this year, published in the corporate newspaper of ArcelorMittal Kryvyi Rih PJSC“ Metallurg ”.

At the same time, he noted that everyone wants to know how long the current situation will last, but it is always very difficult to foresee the future, especially in metallurgy.

“However, we can say with confidence that risks remain even in a stable market, but the company occupies an advantageous position and has a clear plan for the future. This plan focuses on the four priorities we identified in February: cost improvement; implementation of strategic growth initiatives; maintaining the stability of balance sheet indicators for sustainable income generation; and, what is critically important, sustainable development, ”the top manager stated.

According to Aditya Mittal, the company will also work on decarbonization, which is now a major sustainability issue.

“During the quarter, we introduced the XCarb ™ brand to branding any ArcelorMittal product that can show real steps towards carbon neutral steel. XCarb ™ and XCarb ™ green steel recycling and remanufacturing certifications have been well received by customers and confirmed the market demand for reduced carbon steel, ”he said.

The CEO also clarified that the largest demand currently comes from customers in Europe, but the company expects that this trend will be supported in other regions, because the obligations to decarbonize the world economy until 2050 are increasing. An example is the restoration of US commitments under the leadership of President Biden, who made climate change a top priority for the administration and convened a meeting of 40 world leaders to accelerate its progress.