Global steelmakers have been publishing their first-quarter results, highlighting the challenges faced due to the coronavirus outbreak, first in China and then globally. Many of the Western economies are now trying to ease lockdowns. It is time therefore to understand just how much Q2 will be impacted by the emergency and if any recovery can be seen in the coming months.
ArcelorMittal, mainly operating in Europe, Americas and the CIS, has confirmed that in Q1 the company began to feel the hit from the emergency, but that the biggest impact will be seen in Q2. The company expects steel shipments to drop to 13.5-14.5 million tonnes this quarter, marking a potential decline of over 10mt y-o-y. In Q1 global steel shipments from the group reached 19.5mt.
As the market assesses the impact of coronavirus, ArcelorMittal also decided to avoid publishing its outlook for global steel demand. It confirmed, nevertheless, that this will be below 2019 levels.