Global steel consolidation almost done: ArcelorMittal

TOKYO: Consolidation in the steel industry is almost finished, apart from in China, said the head of the world's No.1 steelmaker, ArcelorMittal, dampening speculation of an M&A revival in the sector.

Despite a pick up in global merger and acquisition activity, steel production has seen few large deals since Mittal took over Arcelor in 2006.

The fragmented steel industry is in a disadvantageous position in price talks with iron ore miners, producers of key steelmaking material, as three big miners, Vale, Rio Tinto and BHP Billiton, dominate the market.

"It's almost done," Lakshmi Mittal told Reuters on the sidelines of the World Steel Association conference in Tokyo late on Monday, when asked if the steel industry should consolidate more to gain pricing power over miners.

"There is not much room left for consolidation, except in China," he said, adding that he was not interested in buying a Japanese steelmaker.

South Korea's POSCO, the world's third-biggest steel producer, has said it would aggressively pursue M&A to drive growth, but Shoji Muneoka, president of the world's No.4, Nippon Steel Corp, recently said that company does not see a pressing need for industry realignment.