ArcelorMittal, the world’s largest steelmaker, forecast higher profits this year, driven by higher steel sales and margins, and an increase in iron ore production as Europe ended two years of decline.

The company, which makes 6-7 per cent of the world’s steel and is a broad gauge for the health of global manufacturing, said global steel consumption should increase by 3.5-4 per cent in 2014 from about 3.5 per cent last year. The steelmaker forecast a slowdown in consumption growth in China, Brazil and the former Soviet states, but saw US market expansion of 4 per cent and a modest improvement of 2 per cent in the EU.

Chief executive Lakshmi Mittal said the Luxembourg-based company was cautiously optimistic about 2014, a view reflected by other peers and steel users. – (Reuters)