IRON ORE PRICES DROP SUBSTANTIALLY TO EFFECT BOTTTOM LINE OF STEEL MAKERS

More bad news for iron ore, coking coal prices: world’s largest steelmaker profits halve, sees worse ahead

Frik Els, 3 Nov 2011 – PERMALINK

ZeeNews report the world’s largest steel-maker Arcelor Mittal on Thursday reported a dip of over 51% in net income to $659 million for the quarter ended September 30, 2011, due to rising raw material costs and a fall in demand. The Indian giant also said it will face increasing pricing and volume pressures in the final quarter and is idling production as a result – it has mothballed eight furnaces in Europe and permanently retired another just over the last two months. Arcelor’s gloomy outlook prompted one analyst to observe: “We’re in a very dark market environment right now.”

Sourced & published by Henry Sapiecha

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