European steel giant ArcelorMittal reported a 7.1% drop in third-quarter shipments to 13.6 million tons and a more than 75% drop in profit due to lower shipments and lower prices. This is due to the combination of lower shipments, higher electricity prices, higher carbon costs and overall lower domestic/international prices that European steelmakers are facing in the second half of the year. Arcelormittal’s main production sites in Europe have been adding production cutbacks since September.

 In its quarterly report, the company forecast a 7 percent year-on-year decline in European steel demand in 2022, with all major markets except India seeing steel demand shrink to varying degrees. In view of the fourth quarter European steel prices, demand expectations remain pessimistic, ArcelorMittal’s production reduction activities will continue at least until the end of the year, the company said in the investor report, the fourth quarter overall production reduction may reach 20% year-on-year.