ArcelorMittal flags lower profits, hopes lockdown easings herald turnaround for steel.

ArcelorMittal, the world's largest steelmaker, forecast its steel shipments would fall by up to a third in the second quarter, leading to sharply lower profits as coronavirus restrictions hit demand.

Lockdowns were easing in Europe, India and some U.S. states, with automakers restarting production, while in China demand had increased significantly, Chief Financial Officer Aditya Mittal said.

FILE PHOTO: A steelworker cleans a cylinder at the plant of German steel company Salzgitter AG in Salzgitter, Germany March 2, 2020. REUTERS/Fabian Bimmer

Steelmaker Salzgitter expects 2020 loss to top 100 million euros.

Germany’s second-largest steel maker Salzgitter (SZGG.DE) said on Wednesday that it expects to post a significant 2020 pre-tax loss, most likely of more than 100 million euros ($109 million), as the coronavirus pandemic weighs on its business.

Steel demand is plunging as many sectors are facing the threat of a recession, Salzgitter said, adding that key customers such as the automotive industry are bracing for a decline of more than 80%.

“The stabilising tendencies on the European steel market came to an abrupt end with the restrictions placed on the economy due to the COVID-19 pandemic,” Salzgitter said as it slipped to a first-quarter pre-tax loss of 34 million euros from a year-earlier profit of 126 million.

Nippon Steel books record loss, plans to shut more furnaces.

Nippon Steel Corp on Friday reported a record $4 billion annual net loss as a hefty restructuring charge dampened its earnings, and said it will idle two more blast furnaces from July to cope with slumping demand amid the coronavirus pandemic.

Eiji Hashimoto, the president of Nippon Steel, said it would not be able to avoid a big loss in April-September period.

The world's third-biggest steelmaker booked a net loss of 426 billion yen ($4 billion) for the year to the end of March, against a profit of 257.6 billion yen a year earlier.