ArcelorMittal, the world's largest steelmaker, believes that US and European steel markets will not return to pre-crisis levels next year, although developing countries should drive growth.
"Markets are not expected to normalise in Europe and the US in 2010," chief executive Lakshmi Mittal said in a presentation to be made to investors later today.
However, Mr Mittal said the emerging world and China were equally important and would represent nearly 80 per cent of the global market in 2009.
Domestic demand in China was set to increase by more than 15 percent this year, Mittal said in the presentation on ArcelorMittal's website, but cool in 2010, although it would still grow. He had previously forecast 10 per cent growth this year.
The global downturn that has hit consumers in the key auto and construction markets has forced ArcelorMittal and rivals to run at half capacity in the first half of the year, while destocking has exacerbated the problem.
World steel demand, which dropped by almost 2 per cent in 2008, according to the World Steel Association, was set to fall again this year.
Mittal has previously forecast a 15-20 per cent decline in global demand for steel, recognised as a broad gauge of economic health.
Post-crisis, Mittal said he saw demand returning to a 3 per cent to 5 per cent growth trend, driven by emerging markets.
Chief financial officer Aditya Mittal was also set to announce new debt targets today.
The net debt/average EBITDA (earnings before interest, tax, depreciation and amortisation) ratio would be 0.5 to 1.8. According to his presentation. The ratio had been above 1 from mid-2006, when the group was formed, to mid-2008.
The new gearing target, of net debt to equity, would be 25 to 40 per cent. It had ranged from 35 per cent to 50 per cent in the same period, according to the presentation.
CFO Mittal said capital expenditure would be increased cautiously, with some growth seen in 2010 from 2009.
Reuters