Author: Paul Ploumis
08 May 2015 Last updated at 08:36:03 GMT
SEATTLE (Scrap Monster) : 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%.
