“The strong market conditions enjoyed for much of the past two years deteriorated in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, destocking and higher energy costs combined to put profits under pressure,” said chief executive Aditya Mittal. 

“The short-term outlook for the industry remains uncertain and caution is appropriate,” he added. 

In North America, shipments decreased 4.6% from the prior quarter to 2.3 million metric tons due to weaker demand. 
In Europe, shipments fell by 11.1% from the prior quarter to 7.1 million metric tons due to seasonality and lower demand. Crude steel production was down, too, dropping 3.2% from the prior quarter to 8 million metric tons. Production was down 12% from the same quarter last year. 

“Given the weaker macroeconomic conditions and order book, high energy and carbon costs, and rising imports, (we) announced further, more significant, production curtailments (in France, Spain, Germany and Poland) commencing in 4Q 2022,” it said. 

Looking ahead, the company said 2022 real consumption is expected to grow in both the U.S. and Europe, but destocking is expected to drive a decline in apparent consumption, more so in Europe, where it could fall as much as 7% this year.