ArcelorMittal to Cut Production Up to 15%

Fall in demand

The world's largest steelmaker, ArcelorMittal, said on Oct. 17 it was cutting production and could ultimately reduce output by as much as 15% because of weakening demand.

"In the face of a fall in demand we are in the process of reducing production, which could reach as much as 15%," an ArcelorMittal spokesman said, adding the move would be "temporary."

"This reduction will not be uniform across all our markets" but will have a greater impact "on areas where demand has fallen the most," the spokesman said.

The output cut is likely to boost the price of steel at a time when global demand had been dampened by a worldwide economic slowdown.

ArcelorMittal announced on Oc t. 14 that it was reducing production in Poland by 10%-15% from 2007 levels.

The group said in in September that it foresaw growth of 3%-5% in the world steel market in the coming years, powered by China and other emerging market countries.

Copyright Agence France-Presse, 2008

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish