ArcelorMittal to slash crude output by 12 mt in Q1

February 12, 2009: ArcelorMittal is likely to cut its global crude steel production by 12 million tons (mt) in the first quarter of 2009, compared to levels in the first quarters of 2008, 2007 and 2006.

The company expects capacity utilisation to stay between 55 to 60 percent during the January-March period, according to an SBB report. It plans to keep slashing output until stocks are exhausted.

Chief executive officer L.N. Mittal said, "The Q4 production cuts were the largest ever seen in the steel industry and while they have assisted the required period of destocking, more is required."

"We, therefore, intend to maintain production cuts for the first quarter, which we believe should represent the bottom of the cycle," he added.

Source: Steel Insights Bureau