“Looking into the future, I anticipate that the situation in steel industry in 2013 will continue to be difficult, particularly in Europe”, Mittal commented. He was looking at more optimistic signals coming from outside of Europe. “American car makers have reported recently good results, while European automotive sector is still suffering from over-supply and lower demand”, the CEO of the world’s largest steelmaker noted.

Reaching a preliminary agreement on the fiscal cliff in the US was good news which calmed down the markets. Also, the Chinese Purchasing Managers’ Index rose over 50, which reflects improvement in manufacturing activity, Mittal continued. “All this information fills us with optimism but we have to know that we are going out of deep recession, and the recovery should first of all be lasting”, he said.

He recalled ArcelorMittal’s endeavours to protect its profitability and competitiveness. For example temporary or permanent capacity idling and workforce cuts across its units, also in Poland, as reported by Platts. “I am certain that the actions undertaken in Poland will strengthen our company… What still raises my concern is the high energy cost in Poland and I think we have to find a solution, which will ensure steel production here for many coming years”, he stated.

© Steel Business Briefing