Lakshmi Mitall gave a forecast for the demand for steel

The demand for steel in the world in 2010 will grow, but the steel industry has yet to have a long way until it reaches the pre -crisis level, since the restoration of the global economy is sluggishly. Such a statement was made by the head of Arcelormittal Lakshmi Mittal.

“This year, we will find a 10%growth in world demand for steel,” he said at the annual conference in New York Steel Success Strategies.

He also added that in the light of the European debt crisis, a double recession, which can affect the demand for steel, is not something incredible.

L. Mittal emphasized that high unemployment in the United States - contrary to the stimulation measures of the government - "is an indication that the restoration will be slow."

The head of Arcelormittal also recalled that the steel market should be vigilant due to China’s efforts to tighten monetary regulation, although the situation with consumption of steel in developing markets is positive.

По мнению Л.Миттала, Китай на пути к добавлению в производство дополнительных мощностей в объеме 60 млн. т стали в 2010 и 40 млн. т стали в 2011 г.

Another challenge to steel manufacturers, the head of ArcelorMittal called the introduction of a quarterly updated price of iron ore in the use of a quarterly updated “norm”, when the price of raw materials was determined annually. This, according to L. Mittal, exacerbated the problem of volatility, speculation and rise in prices, and steel manufacturers are now difficult to offer contracts for regular customers.

Source: Metallurgical ballot