Arcelor Mittal 1Q16 Earnings Call Notes

posted in: Notes | 0

ArcelorMittal’s (MT) CEO Lakshmi Mittal on Q1 2016 Results

Operating environment has improved but China still a threat

“Moving to the operating environment, we have clearly seen improvement over the past three to four months. However, China remains a threat, production is higher than domestic demand and exports are elevated. We must continue to encourage China to deliver on these plans to deal with over capacity.”

Infrastructure and auto still support demand in China but real estate has lost momentum

“Our view on demand in China is also the same as last quarter as robust infrastructure and the automotive continue to support steel demand while growth in the real estate has lost momentum as expected.”

Things bottoming out in Brazil

“In long, we are operating at less than full capacity or less than 90% and that will depend on the market, but we are quite confident that at this time we are seeing things that’s kind of bottoming out. We see improvement in Brazilian market slowly, we have to be patient about it, but we are confident that demand will be restored. We have lost about 30% of demand since 2013. So we feel confident that this will be restored and then we will operate at the high capacity and will participate more on the domestic market.”