ArcelorMittal(US:MT) Zhi Tong Cai Jing·2025-04-30 06:45Core Viewpoint - ArcelorMittal SA warns that the ongoing global trade tensions, particularly due to aggressive U.S. tariffs and European support for local steel companies, may significantly impact steel demand and the overall supply chain costs and profits in the steel industry [1][2]. Group 1: Company Performance - ArcelorMittal reported that the global trade turmoil could lead to lower steel demand than previously anticipated, which was initially projected to grow by 2.5% to 3.5% outside of China [1][2]. - The company's first-quarter EBITDA reached $1.58 billion, slightly exceeding analysts' expectations of approximately $1.56 billion, driven by strong performance in iron ore mining [3]. Group 2: Market Conditions - The U.S. government expanded a 25% steel import tariff to all countries, including major suppliers Canada and Mexico, while Europe has also intensified trade protection measures to counteract cheap steel imports from Asia [2]. - The CEO of ArcelorMittal expressed caution regarding the short-term outlook, indicating that unresolved global trade uncertainties could harm business confidence and disrupt the global economy [2]. Group 3: Industry Outlook - The long-term effects of the escalating trade war on the steel industry remain unclear, but short-term indications suggest a potential cooling of global steel demand [2]. - The U.S. effective tariff rate is currently close to 23%, the highest in over a century, which has significantly impacted consumer and business confidence in the U.S. [4].