More indications demand for raw materials remains soft is ArcelorMittal’s saying it will double production cuts. The world’s biggest steelmaker also issued an earnings warning.
Globally output will be scaled down 30 percent, and the share price was hammered as a result, down 15 percent, making that 59 percent over the year.
India’s Lakshmi Mittal thus joins Russian, South Korean, and Japanese chief executives taking big hits only two months after the steel price peaked.
ArcelorMittal is a giant, nearly twice the size of its next two competitors combined, but the year has seen the company’s value tumble to just over 31 billion euros. But dividends will be maintained, and the company ses an improvement in demand next year, when it will also cut billions of debt.
Overall global steel figures still look dismal, production is three point two percent down compared to last year, and will be five percent down next according to a recent study, but Arcelor will need to work hard; globally it is the fourth worst performer of the 12 major steelmakers.