The world's number one steel, ArcelorMittal, announced Friday it reduced its current global production of steel. The decline could reach 15%.
"Faced with reduced demand, and temporarily, we are setting up production cuts, which could take up to 15%," said a spokesman.
This reduction will not be uniform in all markets, but will receive more "areas where demand has decreased the most." The group does not provide more details about the countries directly concerned. Tuesday, the group announced it would reduce its steel production in Poland from 10 to 15% compared to 2007 levels.
The Belgian press said Thursday that once this drop in production will affect the sites of Liege (Belgium). Unions have been summoned on Monday by management, which has detailed the steps it will take: the sector will be cold to stop every two weeks, the train broadband will be at a standstill a month, blast furnaces and idling and will be off.
The Arcelor Mittal has lost up to 4% in the minutes following the announcement Friday, before recovering significantly, to close at 22.22 euros, an increase of 10.57%.( Finance Information City )Such a reduction in production is likely to support prices of steel (which is certainly the goal), while demand is constrained by the global economic slowdown, the automotive sector - large consumer of steel - are particularly impacted by the crisis.
In September, Arcelor Mittal had indicated expect a growth of world steel market "3 to 5% in the coming years, including coverage by China and emerging countries.
With this demand, the price of steel should remain "above 1,000 dollars per tonne in the years to come," he stressed, announcing a plan savings 2.8 billion euros (4 billion dollars), with reductions.
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