Arcelor Mittal ups global steel demand growth forecasts

SEATTLE (Scrap Monster): The leading global steelmaker-Arcelor Mittal has increased its global steel consumption forecasts. The company expects the global steel consumption to end higher by 3-3.5% in 2014. The indicators for the US and EU regions look positive, said Lakshmi Mittal, Chairman and CEO.

According to Arcelor Mittal estimates, Europe will show strong demand growth for steel during this year. The apparent steel consumption of the region is expected to grow by 3-4%. The US steel demand will spike during the second half of the year. Despite the huge fall in demand during Q1 2014 due to severe weather conditions, the company still believes that 5-6% growth is still possible in the US during 2014.

Arcelor Mittal notes that China has shown signs of stabilization. The positive policy reforms by the Chinese administration may result in domestic demand growth of anywhere between 3 to 5% in China. Despite the ongoing geopolitical crisis in CIS region, the apparent steel demand may rise by 3% when compared to the previous year.

Meanwhile, Arcelor Mittal is reported to have locked out workers at Contrecoeur, Quebec plant after majority of workers voted against the company’s revised contract offer, primarily in opposition to the proposed changes to the pension plan. The employees also stated that the offered wage hike was insufficient.