ArcelorMittal reduces losses in the first quarter of 2016

ArcelorMittal, the first global steel producer, has closed the first quarter of 2016 improved, with net losses of $ 416 million (364.3 million euro) compared with 728 million the same period last year. The company has however confirmed that foresees further improvements on the side of profits, with EBITDA (earnings before interest, taxes, depreciation and amortization), which for 2016 to exceed $ 4.5 billion (3.94 billion euro).

In a statement the company explained that the steel market remained weak due to excess capacity in Cina. The fall in iron ore prices and the low cost of steel imports from China has weighed heavily on all companies in the sector.

Lakshmi Mittal, President and CEO of the company, said that the results of January to March "reflect the very difficult operating conditions in the second half of 2015. Since then we have seen a recovery of spreads in our target markets to more sustainable levels, which should lead to better results in the coming quarters. This is a positive development, although given the levels of excess capacity in China the market remains fragile and we must continue to be vigilant and active against the threat of unfair trade. "

Sales in the quarter fell by almost 22 percent over the previous year, to $ 13.4 billion dollars while steel deliveries totaled 21.5 million tons, an increase of 8.8 percent over the quarter corresponding 2015.