Posted on 11 May 2015
World apparent steel consumption to see marginal rise in 2015: Arcelor Mittal
The steel business performance by Arcelor Mittal during the first
quarter of the current year remained similar to Q1 2014. The quarterly
operating report by the company states that the company had to face
several headwinds during the quarter. The company’s performance during
the initial quarter of the year was badly affected by waning
iron ore prices, rising US steel imports and a strengthening US dollar.
Lakshmi Mittal, CEO, Arcelor Mittal stated that the company is
currently focused on plans to overcome the headwinds facing the
industry. It expects to cut down mining costs during the year by at
least 15% from current levels. Based on current circumstances, global
apparent steel usage is expected to increase marginally between 0.5% and
1.5% during 2015.
The apparent steel consumption in the US is expected to declaine by
2%-3% during the year. CIS region and Brazil are likely to witness
sharper drop between 5% and 7% in 2015. Weak real estate market may
offset anticipated demand growth due to government stimulus. The Chinese
apparent steel consumption may grow between 0.5% and 1.5% during the
year. On the other hand, pickup in manufacturing activity in The
European region may result in 1.5%-2.5% growth in the region’s steel
demand.
According to press release, Arcelor Mittal’s crude steel
production totaled 23.7 million tonnes during the first quarter of the
year. The crude steel output climbed higher by 3.0% when compared with
Q1 2014 and by 2.6% upon comparison with Q4 2014. The global steel
shipments by the company totaled 21.6 mt during the first quarter,
rising 2.9% over the year and by 1.9% over the previous quarter. Iron
ore shipments remained flat during the quarter on year-on-year basis.
When compared with the previous quarter, the shipments fell by 5%.
