ArcelorMittal announces production cut
The world's largest steelmaker, ArcelorMittal, said on Friday it was cutting production and could ultimately reduce output by as much as 15 percent because of weakening demand.
By Agencies |
PARIS: The world's largest steelmaker, ArcelorMittal, said on Friday it was cutting production and could ultimately reduce output by as much as 15 percent because of weakening demand.
"In the face of a fall in demand we are in the process of reducing production, which could reach as much as 15 percent," an ArcelorMittal spokesman said, adding the move would be "temporary."
"This reduction will not be uniform across all our markets" but will have a greater impact "on areas where demand has fallen the most," the spokesman said.
ArcelorMittal shares fell 4.0 percent immediately after the announcement before rallying to gain 2.72 percent in late-day Paris trade.
The output cut is likely to boost the price of steel at a time when global demand had been dampened by a worldwide economic slowdown.
ArcelorMittal announced on Tuesday that it was reducing production in Poland by 10-15 percent from 2007 levels. The group in September said it foresaw growth of 3.0-5.0 percent in the world steel market in the coming years, powered by China and other emerging market countries.
"In the face of a fall in demand we are in the process of reducing production, which could reach as much as 15 percent," an ArcelorMittal spokesman said, adding the move would be "temporary."
"This reduction will not be uniform across all our markets" but will have a greater impact "on areas where demand has fallen the most," the spokesman said.
ArcelorMittal shares fell 4.0 percent immediately after the announcement before rallying to gain 2.72 percent in late-day Paris trade.
The output cut is likely to boost the price of steel at a time when global demand had been dampened by a worldwide economic slowdown.
ArcelorMittal announced on Tuesday that it was reducing production in Poland by 10-15 percent from 2007 levels. The group in September said it foresaw growth of 3.0-5.0 percent in the world steel market in the coming years, powered by China and other emerging market countries.
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