Steel’s Surprising Surge Is Far From Over, Arcelor Says

By Thomas BiesheuvelBloomberg

After years of bleak news from U.S. and European steelmakers, the industry is finally thriving again. ArcelorMittal, the largest producer, says it’s more than just a blip.

“When things structurally improve they last longer than months,” Chief Financial Officer Aditya Mittal said. “It should be a multiyear phenomena.”

Steel prices and producers’ shares are being buoyed by a rare combination of good news. Global demand is strong – ArcelorMittal sees usage rising 3 percent this year – and China, which has long been the cause of too much supply, is shutting plants to cut pollution. Nations have also strengthened trade defenses after China’s so-called steel dumping became a political flashpoint.Chinese exports have dropped to the lowest since 2014 as the nation, which makes half the world’s steel, closed outdated mills to reduce overcapacity and clean up the environment. Officials have also directed further cuts be enforced over winter in some key areas.

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