ArcelorMittal SA’s third-quarter profit fell as steel prices declined in key markets due to weaker demand.

The world’s top steelmaker outside of China reported a 28% decline in earnings from the previous quarter, better than analysts expected. Margins and sales were squeezed as the manufacturing and construction sectors languished.

The steel industry — a proxy for the global economy — is suffering from a slump in demand as tighter monetary policy and China’s weak post-pandemic recovery hit the consumption of raw materials. Furnaces across Europe, where ArcelorMittal has the bulk of its production, have been idled, while rival steelmakers announced job cuts in recent weeks.

Still, ArcelorMittal left its forecast for 2023 steel consumption outside China unchanged, after cutting its projection in July. It sees European steel consumption toward the bottom end of its previous forecast.

“The company remains positive on the medium/long-term steel demand outlook,” ArcelorMittal said in a statement on Thursday.

Safety Audit

ArcelorMittal has particular difficulties of its own. The firm is set to lose its steel plants and mines in Kazakhstan following an accident that killed 46 people. Meanwhile, its giant Ukrainian mill has faced frequent disruption since Russia invaded the country.

The company is providing financial support to the families and colleagues of those who died in the accident at the Kostenko coal mine in Kazakhstan. It’s also commissioning a third party audit of its safety practices.

The steel giant is still seeking new assets elsewhere. It’s in the running to buy United States Steel Corp., which would be the firm’s biggest deal since the merger that created ArcelorMittal almost two decades ago.

The company reported third quarter earnings before interest, taxes, depreciation and amortization of $1.87 billion.

(Updates with comment on long-term demand in fifth paragraph, safety audit in seventh)