ArcelorMittal, the world’s largest steelmaker, reported quarterly profit above estimates after easing restrictions to stop the spread of the coronavirus pandemic (Covid-19) led to improved demand in all regions, Reuters reports.
The Luxembourg-based company, which accounts for about 5% of the world’s steel production, reported a pre-tax profit, interest, depreciation and amortization (EBITDA) of $ 901 million in the third quarter of 2020, a decline of 15% compared to the same period in 2019 and slightly below analysts’ estimates, of 838 million dollars.
The steel market is recovering after an extremely difficult second quarter, with significant improvements in profits in Brazil, South Africa, Kazakhstan and Ukraine.
The mining subsidiary also had an evolution above estimates in the third quarter of 2020, following the higher price of iron ore and the increase in production.
The company expects iron ore deliveries in 2020 to be at 2019, after previously forecasting a 5% decline.
ArcelorMittal has begun to reopen some production facilities, although demand has remained below normal, with uncertainties exacerbated by the second wave of the pandemic.
The company will continue to cut costs and close the blast furnace in Krakow, Poland.