By Matt Day
The global economy is stabilizing, led by accelerating activity
in China and the U.S., and should pick up steam in the months
ahead, the chief executive of ArcelorMittal (MT) said
Wednesday.
"The global economy is stabilizing and should gradually
strengthen over the course of 2013," Lakshmi Mittal said on a
conference call to discuss the steelmaker's fourth-quarter
results.
But Mr. Mittal said the economic environment in Europe, the
largest market for the Luxembourg-based steelmaker, will "remain
challenging."
ArcelorMittal, the world's largest steelmaker in terms of
production, expects steel consumption in the 27 members of the
European Union to fall 1% this year, a slower contraction than last
year's 9% decline. In the U.S., ArcelorMittal is forecasting demand
growth of 4%.
"Unlike in Europe, credit is available in the U.S., and
businesses are getting loans," Mr. Mittal said.
Demand from China, by far the largest consumer of steel, will
grow 3%, the steelmaker said. Globally, ArcelorMittal expects steel
consumption to rise 3% this year.
"Economic growth appears to be picking up" in China, Mr. Mittal
said.
ArcelorMittal on Wednesday reported a net loss of $3.99 billion
during the final three months of 2012, from a loss of $1 billion in
the same period a year earlier. The fourth-quarter results included
a $4.3 billion write-down of its struggling European division.
The company is operating just 16 of its 25 blast furnaces in
Europe, in response to weak demand and ample capacity. Plans to
close facilities in Belgium and France have resulted in protests
from government officials and organized labor leaders.
Write to Matt Day at matt.day@dowjones.com
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