Mittal forecasts steel sector recovery in Q2

February 12, 2009: ArcelorMittal is upbeat on a turn of fortunes for the steel industry in the second quarter.

Chief executive officer L.N. Mittal considered January-February as the period for bottoming out, according to a media report. However, things are expected to improve in the second half as freight rates have already doubled in the past week on the back of iron ore restocking.

He said, "We believe there will be a gradual improvement that will take until 2010, maybe 2011. There is improved demand from China as steel mills reopened from December shutdowns and increased steel production in emerging markets India and Russia. Steelmakers were replenishing stock while the results of the government stimulus plans to kickstart economies in China were soon to be felt."

Steel production for ArcelorMittal is expected to decrease 7 to 15 percent in 2009. Mittal added, "It would take a further two and a half years before production at steel plants reaches the same levels as before the global financial collapse in October."

Source: Steel Insights Bureau