This is based on analysis of the Chinese economy; China's economic stimulus plan is taking effect at present, the credit loans of banks to major consumers of steel, such as construction, automobile, have apparently been growing, and China's economy is recovering.

 

However, the world's steel industry is experiencing a real decline in demand and there could be an expected fall of 10% to 15% at the end of 2009. The market will probably not recover to the level of 2007 until 2011 or 2012.

 

Roland released that ArcelorMittal's two partners in China, Hunan Hualing and China Eastern have gained new orders recently. His company is doing the negotiations for two new cooperation projects with Hualing, which mainly concern automotive steel and electrical steel.

 

He stressed that a grasp of iron ore resources is key to cost-control. There is no doubt that any further cooperation between his company and the Chinese partners will involve iron ore.

 

But ArcelorMittal is very careful about projects which need a big sum of cash. This year, the opportunities for large mergers or acquisitions are slim.

 

He added that because China's iron and steel industry is too scattered, it is important to speed up integration and improve the industry's degree of concentration.