Global Steel Demand Set to Rise Predicts Arcelor-Mittal
When an industry is in doldrums, it looks for reassurance from some of the bigger stake holders in the industry. In that regard,it is indeed heartening news for the steel indsutry, that Arcelor-Mittal, the biggest steel producer in the world has stated that steel consumption is going to rise in the coming financial year following one of the most disappointing periods in the recent history of the steel industry.
Over the past year or so, the global steel industry has probably gone through its most trying period for many years and plenty of global steel giants have found the going tough in a global business climate that has seen steel prices crash overnight due to a glut of steel from China. Plenty of steel factories at different parts of the world have had to be closed down since the business had become commerially unviable for many major corporations and one of the most widely reported closure was that of the TATA Steel plan in Wales since the company was losing £1 million each day.
In addition to that, steel stocks have also taken a royal beating at all the leading stock exchanges across the world and in such a situation, the reassurance from the world's leading steel producer would certainly come as a welcome boost for the industry at large. Analysts at the company believe that the consumption of steel on a global scale is going to be stabilised in the near future and they expect that total demand would increase by 0.5%. The projected increase in demand is due to increased in demand from China, one of the biggest steel consumers in the world and there is no doubt that this would come as great relief to steel companies all across the world, who have reported huge losses this past financial year. Arcelor-Mittal have themselves reported a loss this year to the tune of a jay dropping £287 million for the financial year. However, it is important to take not that the company is not exposed to the Chinese market and hence some of its forecasts should be taken with a pinch of salt.
