Steel Mills
February 8, 2016
ArcelorMittal Sees 3%-4% Growth in U.S. Apparent Consumption
Written by John Packard
During their earnings conference call with the financial analysts, ArcelorMittal spoke about excess Chinese steelmaking capacity which needs to be removed from the markets as well as demand outlook which they believe will improve in the United States and Europe during 2016. The following selected comments were taken directly from the ArcelorMittal conference call transcript dated February 5, 2016:
Beginning with China, we stated our Q3 results in November, but the price levels in China were unsustainable with the average CFR numbers losing approximately $60 per tonne. Since November, we have seen a number of positive developments relating to the China steel industry outlook. Premierly is enacting supply-side reform, targeting [indiscernible] companies within industry with excess capacities, including steel. I’ve seen numerous research people, suggesting that the action plan to tackle excess capacity in the steel industry is more determined and supported by a dedicated fund to provide social support to displaced workers. This also reflects my views post my most recent visit in November. I do believe that a capacity will be removed and the industry in China will restructure, but I expect that this will not happen short-term and will take time to be effective.
