Steel consolidation now focused on China - Mr LN Mittal

Thursday, 13 Oct 2011

Dow Jones reported that as per the world's largest steel maker’s CEO Mr LN Mittal, China holds the greatest potential for further consolidation within the steel industry following the conclusion of a consolidation spree in developed world such as the US and Europe.

Mr Mittal on the sidelines of the annual World Steel Association said “The potential is only in China. If you go around the geographies there is limited potential" for consolidating assets elsewhere.”

He noted that consolidation has already occurred in regions such as Europe and in the US, the world's second largest steel consuming country after China.

Mr Mittal said Chinese steel consolidation would be led by China's top 10 producers rather than foreign companies.

But Mr Mittal doesn't expect ArcelorMittal will play a role in the consolidation. He said “China is not in a mood to allow foreign companies to increase their presence in the country.”

He expects China's top 10 Chinese steel producers will account for 60% of China's steel output in five years' time and 75% in 10 years, up from 40% to 45% at the moment.

He noted that within five years, Chinese steelmakers may also start to look internationally to expand their operations, which would be positive for globalization.

(Sourced from Dow Jones Newswires)