ArcelorMittal, the world's biggest steelmaker, on Wednesday raised its forecast for demand growth in China this year but believes that the U.S. markets and Europe will continue to suffer from the financial crisis through 2010.
"No market is expected to normalize in Europe and the United States in 2010," said Chief Executive Lakshmi Mittal said in a document to be presented to investors later on Wednesday.
However, Mittal, whose company produced more than 7 percent of the world's steel last year, said China emerging regions and represent about 80 percent of the global market in 2009.
China's domestic demand would increase by more than 15 percent this year and would cool in 2010, Mittal said in the presentation posted on the website of ArcelorMittal.
Previously projected growth of 10 percent this year.
The global economic crisis that affected customers in the key steel automotive and construction market, has forced his rivals ArcelorMittal operating at half capacity during the first half of 2009, down from 60 percent in prices spot, while the divestiture exacerbated the problem.
The global steel demand, which fell by nearly 2 percent in 2008, would fall again this year, according to World Steel Association (WSA for its acronym in English).
Mittal previously forecast a decline of between 15 and 20 percent in global steel demand, recognized as a general indicator of economic health.
Once termindada the worst crisis in the developed world since the 1930s, Mittal expects demand to return to trend growth of between 3 and 5 percent, led by emerging markets.
"Chinese demand took by surprise some people, largely through the stimulus package and infrastructure construction. That's what's sustaining the steel market," said a London analyst who declined to be identified.
Chinese steel production jumped by 22 percent year to a record 52.3 million tonnes in August, posting its fifth consecutive monthly rise.
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