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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Wyätt Gwyön who wrote (2071)	3/15/2004 11:24:37 AM
From: mishedlo	Read Replies (1) of 116555

China demand/output has led to 'crazy situation' on steel market - Arcelor CEO BRUSSELS (AFX) - A surge in Chinese consumption and production has created "a crazy situation" on the world steel market, European steel group Arcelor's chief executive officer Guy Dolle said. "There is not enough steel available to satisfy the demand," Dolle told journalists here Friday. "We don't have enough coke, enough iron ore" to meet the demand, he said. "We haven't seen as rapid a development in the last 30 years," Dolle added. He attributed what he called "a crazy situation" on the global market to China's appetite for steel. The current circumstances are nonetheless of no great help to producers, he said. "Prices are good but margins are not necessarily good." The price of coke has quadrupled in the last 15 years while that of scrap iron has doubled in a year, Dolle said, noting however that in Europe part of the price hikes have been neutralized by the strength of the euro. "The problem is knowing if we are capable of increasing prices quicker than costs," he said. Dolle added that he is "a little more optimistic" than he was a month ago about Arcelor's results this year, particularly in the second and third quarters. fxstreet.com

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