Feb. 6, 2025 - Steel giant ArcelorMittal anticipates a recovery in steel demand this year after a challenging 2024, mainly due to disruptions from the Chinese steel industry. China, which produces more than half of the world’s steel, has been grappling with weak domestic demand caused by struggles in its construction sector. As a result, Chinese producers have flooded foreign markets, including Europe, with cheap steel.

Although Europe has imposed tariffs to tackle the influx of cheap Chinese steel, CEO Aditya Mittal again calls for stricter trade measures against China. He believes demand will improve in 2025 as inventory levels remain low, but warns that the global steel industry still faces significant overcapacity. "Further action is needed, especially in Europe, to tackle this," Mittal stated.

Financial performance and investments

In 2024, ArcelorMittal’s revenue fell by 8.5 per cent to 60 billion euros due to a 7.6 per cent drop in steel prices. Despite this, the company’s net profit increased to 1.2 billion euros, up from 886 million euros the previous year.

Looking ahead to 2025, ArcelorMittal plans to invest between 4 and 5 billion euros, prioritising growth in Brazil, India, and the United States. It will also allocate 300 to 400 million euros specifically for decarbonisation projects.

Slow progress of decarbonisation

While ArcelorMittal has pledged to reduce CO2 emissions, it acknowledges that large-scale greening efforts are lagging due to weak market conditions and insufficient policy support. "It is crucial that we see progress in 2025, both in providing the necessary financial assistance and in creating a policy environment that stimulates the investments needed to accelerate decarbonisation in Europe," Mittal stated.

In Belgium, ArcelorMittal’s Ghent plant was slated for a major climate investment, shifting from traditional blast furnaces to electric ones. The project was initially hailed in 2021 as "the largest climate investment ever in our country." However, the company’s European management will only decide in 2025 whether this project remains a priority.

ArcelorMittal also operates smaller plants in Liège, Geel and Genk, but the future of its green investments in Belgium remains uncertain.