The Luxembourgish multinational steel manufacturing corporation ArcelorMittal, which is the world’s largest steelmaker, reported a 42 percent year-on-year increase in third-quarter profits. Still, the company expects profits to improve as U.S. tariffs drive steel prices and global demand for steel continues to grow. Reuters reports:
The steel market has been impacted this year by the 25 percent import tariffs put in place by U.S. President Donald Trump to try to reduce imports from China and Europe.
ArcelorMittal makes steel in the United States and has said that it benefited on balance from these protectionist measures, as they raise prices.
“Market conditions in the third quarter remained favorable,” Chief Executive Lakshmi Mittal said in a statement on Thursday. “We continue to see robust real demand and healthy utilization rates across all steel segments.”
After supply problems led to a 5 percent decrease in steel shipment in Q3, Arcelor said it expects shipments to increase heading into Q4. Meanwhile, sheet metal shops and auto manufacturers across the U.S. continue to grapple with rising steel prices caused by tariffs.