ArcelorMittal SA (MT), Europe's largest steelmaker, saw its shares surge 6.17% in pre-market trading on Thursday, following the company's optimistic outlook on potential state support for the steel industry. The steelmaker expressed hope that government backing could significantly boost its business in the coming year, igniting investor enthusiasm.

The positive sentiment stems from ongoing discussions within the European Union about implementing measures to protect its steelmakers. These protective measures could include the introduction of hefty tariffs on steel imports, aimed at safeguarding the domestic steel industry from international competition. Such actions would likely create a more favorable operating environment for European steelmakers like ArcelorMittal.

As the largest steelmaker in Europe, ArcelorMittal stands to benefit substantially from any protective measures implemented by the EU. The potential for increased tariffs and other supportive policies could lead to improved profit margins and market share for the company. This development is particularly significant given the challenges faced by the global steel industry in recent years, including overcapacity and price pressures from international competitors.