Arcelor Mittal Increases Forecast for Global Steel Demand Growth

The world's leading steel producer, Arcelor Mittal, has increased its forecasts for global consumption of Glo steel. The company expects global steel consumption to be 3-3.5 percent higher in 2014 as the US and EU regions show positive developments, said Lakshmi Mittal, the company's chairman and chief executive officer. Despite the ongoing geopolitical crisis in the CIS region, steel demand in this region could grow by 3 percent over the previous year.

According to analysts at Arcelor Mittal, Europe will see strong growth in steel demand during this year. Apparent steel consumption in the region is expected to grow by 3-4%. Steel demand in the US expects a surge in the second half of 2014. Despite a huge drop in US demand in Q1 2014 due to severe weather conditions, the company still believes that 5-6 percent growth is still possible in the US in 2014.

Arcelor Mittal notes that China has shown signs of stabilization. Positive political reforms in the Chinese administration can lead to an increase in domestic demand in various areas of the country from 3 to 5 percent.

Meanwhile, Arcelor Mittal is focusing on workers' confrontation at its Contrecoeur, Quebec plant after a majority of workers voted against the firm's revised contract. First of all, they are not satisfied with the proposed changes in the pension plan. Therefore, employees said the proposed salary increases were insufficient and continued opposition, which could lower the performance across Canada.