29 Maret 2010
World Steel Demand Seen Up 11 pct in 2010

Demand for steel around the world will rise 11 percent in 2010 as the global economy recovers, World Steel Association chairman Paolo Rocca said on Thursday.

Speaking at a Mexican steel event, Rocca said higher demand in North America would anchor the global increase. Rocca is also CEO of Argentine conglomerate Techint, which controls steel producer Tenaris.

Global steel makers have been bringing back capacity idled during the recession in anticipation that demand for steel will pick up this year.

In Mexico, steel companies may invest up to $10 billion over the next five years, which could increase capacity by up to 10 million tonnes, an industry official said.

Raul said the investments would largely come from major companies like AHMSA, Ternium, ArcelorMittal and Brazil's Gerdau.

"We are feeling a recovery, (although) we think it will be slow and fragile," Gutierrez said at the steel event.

Mexico now has capacity to produce around 22 million tonnes a year but in 2009 produced only 14 million tonnes as the country suffered a deep recession.

Gutierrez said the recovering economy would boost output this year to 15.8 million tonnes.

He said the industry has been hit by increasing crime in Mexico in the past few years and estimates that last year it lost $29 million due to train and truck robberies of scrap metal and steel products. ($1 = 12.57 pesos)

(Source: SEAISI Website)

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