ArcelorMittal Reports Best Quarter in Decade as Steel Joins Boom

ArcelorMittal SA reported a bumper first-quarter profit as steel prices soared amid a commodities boom that’s touched everything from copper to corn.

Earnings before interest, taxes, depreciation and amortization were $3.24 billion, ArcelorMittal said Thursday in a statement. That surpassed analysts’ estimates.

“The first quarter of this year has been our strongest in a decade,” said incoming Chief Executive Officer Aditya Mittal. “While this is naturally a very welcome development following a highly challenging 2020, we are mindful that Covid continues to be a health challenge across the world especially in developing economies.”

Mittal took the helm at ArcelorMittal from his father this year as rebounding demand from the manufacturing and construction industries collides with tight supply. The resulting boom has pushed benchmark European steel prices to the highest on record.

ArcelorMittal reiterated its projection for steel demand -- a key barometer for global economic growth -- to increase by 4.5% to 5.5% this year, but said it could be above that range. Demand contracted in 2020 during the pandemic.

ArcelorMittal and other western steelmakers could further benefit should China, the No. 1 producer, succeed in curbing its output as part of a crackdown on emissions. Keeping prices higher for longer could also help fund decarbonization initiatives in the steel industry.