After cutting output by up to 35 per cent a few months ago in response to slackening demand and prices, the world's largest steel maker, ArcelorMittal, may increase production if demand for the commodity rises next year, a media report says.
"If the demand starts improving in the first or the second quarter, we will increase production," ArcelorMittal Chief Executive Officer and Chairman Lakshmi N Mittal was quoted as saying by newswire Bloomberg in Kazakhstan.
The firm, which led the cut in steel production globally as the industry was caught in the grip of an economic slowdown and credit crunch, said that there will be no further trimming of output.
"Inventory levels are very low.... We cut output by 35 per cent, and it was very aggressive for us.... I do not think there will be an additional production cut," the Indian-born steel tycoon was quoted as saying.
Globally, steel demand took a hit due to the slowdown. Steel prices have come down to about $600 a tonne from the peak of $1,250 per tonne, earlier this year.
Steel-manufacturing firms across the globe had resorted to several cost-cutting. ArcelorMittal had last week announced a "voluntary separation programme" to downsize its workforce across the globe by about 9,000.
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Tata Steel's European subsidiary Corus had also announced a production cut of up to 30 per cent. Many Indian companies like SAIL, JSW Steel, Essar Steel, and Ispat Industry had reduced prices by up to 20 per cent and also a majority of them lowered output.
ArcelorMittal had recorded an output of about 116 million tonnes and clocked a revenue of $105.2 billion by the end of last fiscal.