ArcelorMittal more optimistic on steel demand outlook for 2020

ArcelorMittal said it's more optimistic on the outlook for steel demand this year after the world's biggest producer reported its lowest earnings since the company was formed in 2006.

"Whilst acknowledging the risks and uncertainties, ArcelorMittal believes that there are signs that the real demand slowdown is beginning to stabilize," the company said. "The supportive inventory environment means that we are more optimistic on the apparent demand outlook for 2020."

That outlook comes after the steel industry was hard hit last year by slumping demand from automakers, trade wars and sluggish economies in Europe. Still, demand from China is seen weaker this year, between flat and 1% higher, from an estimated growth of 3.Asian Metal Copyright Still, demand from China is seen weaker this year, between flat and 1% higher, from an estimated growth of 3.Asian Metal Copyright2%, the company said.Asian Metal Copyright2%, the company said.Asian Metal Copyright The forecast range includes ArcelorMittal's current view on the coronavirus outbreak, it said.Asian Metal Copyright1% in 2019.Asian Metal Copyright "We believe the effect of the coronavirus will likely have a short-term negative demand impact in China and to a lesser degree elsewhere."

Overall, ArcelorMittal expects global steel demand -- a barometer of economic growth -- to grow by 1% to 2% this year after expanding 1.1% in 2019.

.Asian Metal Copyright" That outlook comes after the steel industry was hard hit last year by slumping demand from automakers, trade wars and sluggish economies in Europe.Asian Metal Copyright