Arcelor Mittal NY (NYSE:MT) shares are trading higher on Thursday after reporting first-quarter results.

The company reported first-quarter sales of $16.282 billion, beating the analyst consensus of $16.238 billion. 

The company’s crude steel production remained primarily flat year over year at 14.4 metric tonnes, while steel shipments decreased to 13.5 metric tonnes from 14.5 metric tonnes.

The company forecasts world apparent steel consumption to grow by 3% to +4% in 2024, excluding China.

Total Group iron ore production in the quarter under review decreased to 10.2 metric tonnes from 10.8 metric tonnes year over year.

“We have an exciting pipeline of growth projects underway, including the 1GW renewables project in India and Vega CMC in Brazil, both of which are expected to commence operations in the first half,” said Aditya Mittal, Arcelor Mittal Chief Executive Officer.

The Luxembourg-based company said its first-quarter EBITDA was $1.96 billion, lower than $2.14 billion a year ago. 

What’s Next?

Overall economic sentiment remains subdued with customers maintaining a “wait and see” approach with no apparent restocking. 

Nevertheless, sentiment appears to have reached a floor, and given the low inventory environment (particularly in Europe), as soon as real demand begins to gradually improve, apparent demand is expected to rebound. 

Arcelor Mittal remains positive on the medium/long-term steel demand outlook. Capex in 2024 is expected to remain within the $4.5-$5.0 billion range (of which $1.4-$1.5 billion is expected as strategic growth capex).

Price Action: MT shares are trading higher by 2.59% to $25.72 at the last check Thursday.

Janno Nivergall from Pixabay