ArcelorMittal Claims Steel Demand & Prices Remain Stable
Dow Jones released the following article on steel prices for the future:
ArcelorMittal (MT), the world's largest steelmaker, says orders aren't yet showing real demand deterioration and that steel prices are stable in most markets and rising in the U.S., the company's chief executive said in a presentation Friday.
"There are no signs of recession but there is an evident slowdown," said Lakshmi Mittal at the company's investor day conference. "When I speak to customers they are becoming more cautious" as a result of recent uncertainties.
But Mittal also said that "the current conditions are resilient...we have been able to raise prices in the past few weeks [in the U.S.] and that wouldn't be possible unless there is demand."
Mittal also said that scrap and raw material prices remain stable, with scrap prices indicating demand stability rather than collapse.
He said that leading regional indicators, primarily purchasing managers index, point to a decelerating global economy but he doesn't expect a repeat of the 2008-09 crisis which lead to a global economic slump and weaker steel demand.Source: Dow Jones