ArcelorMittal CFO Says China's Steel Industry Losses Unsustainable
November 06 2015 - 4:33AM
Dow Jones News
By Alex MacDonald
LONDON--The losses that Chinese steel makers are racking up due
to the continued sale of cheap steel at unsustainably low prices
will likely impact the country's economy if the issue isn't
resolved soon, ArcelorMittal's (MT) chief financial officer said
Friday.
It is also affecting steel markets worldwide as Chinese steel
makers export record amounts of steel to offset weaker demand at
home, Aditya Mittal told reporters following third-quarter results
from the world's largest steelmaker.
In the first nine months of the year, Chinese steel producers
have accumulated $8 billion in losses, most of them in the third
quarter, Mr. Mittal noted, citing figures from the China's steel
association.
"Eventually...these losses will mount up, and are mounting, and
if no solution is found, clearly that will have other consequences
for the Chinese economy," Mr. Mittal said.
-Write to Alex MacDonald at alex.macdonald@wsj.com
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(END) Dow Jones Newswires
November 06, 2015 04:18 ET (09:18 GMT)
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