Turnover however is an increase of 19 20

Penalized in 2010 by the rise in raw materials, ArcelorMittal is thought to be in the process of overcoming this difficulty. This year, the number one global steel thought to better reflect the increase in raw material on its customers, and the pressure on its margins seems to shrink. The Group also announced yesterday an objective of benefit in the short term than the expectations of analysts: should identify a gross operating surplus located between 2 and 2.5 billion in the first quarter. "Selling prices improve, but this positive momentum should be maintained, because we face the pressure of costs of raw materials, which continues to be one of our major challenges," said Lakshmi Mittal, CEO of the Group yesterday. These prospects were welcomed on the stock exchange: ArcelorMittal title closed session of yesterday an increase of 2.81.

"Until in 2009, we have worked with our suppliers of iron based on annual contracts." "In 2010, they have decided to change the pricing mechanism for quarterly contracts," says Lakshmi Mittal. This led the Steelworkers to review their relations with their customers in turn. "There was a phase of transition during which they were confused - and we were not certain of the evolution of the price system.". This phase is now complete. 

The negotiations were particularly tense in the automobile manufacturers refused to sign quarterly contracts. "In some areas in need of long term visibility, we are prepared to accept contracts of six months," says Lak-shmi Mittal.

ArcelorMittal has recorded the final three months of 2010 a gross operating surplus of $ 1.9 billion, down 10 over the same period in 2009. Turnover, however, is an increase of 19, 20.7 billion. This decrease in margins is linked to the fact that the quarterly contracts imposed by the three mining Giants BHP, Vale and Rio Tinto have increased supply costs. ArcelorMittal has had difficulties to reflect this increase in a context of weak demand, particularly in the developed economies.

In the group, the capacity utilisation is decelerated to 69 end of 2010, compared with 78 in late June. "There is overcapacity and we adjust our production to demand," acknowledged yesterday the CEO. But it does today "not permanent closure of one of the important sites."

The world number one suffered more situation that ThyssenKrupp or Voestalpine, competitors who are more present in the German manufacturers, in full form and less exposed to the construction sector in the South of Europe, still enmeshed in the crisis.

ArcelorMittal said more optimistic in the beginning of this year, if the group sees a rebound in demand which should allow it to be in a better position in the negotiations. The steel table on a strong recovery in the US, moderate growth in China and a rebound in stocks in Europe. Lakshmi Mittal provides accordingly as "2011 will be for ArcelorMittal a better year than 2010." Last year, the group reached a net income of 2.9 billion of $ 157 million in 2009.

To reduce its dependence on large ore producers, the Group wants to invest $ 1.4 billion in its mining activities. The objective is to increase its production of iron ore 10 in 2011 and the porter to 100 million tonnes by 2015.