TPT September 2014

Global Marketplace

23 rd International Sheet Metal Working Technology Exhibition

Steel ArcelorMittal is watching and waiting for China to put out a bigger welcome mat for foreign steel makers “At this time our agenda is to participate in this niche market.” Lakshmi Mittal, the CEO of ArcelorMittal, the world’s largest steel maker, said this in the course of a 16 June interview with Bloomberg News in Loudi, in China’s Hunan province, at the opening of his company’s $832mn automotive steel venture there. The niche reference was to the Chinese automotive market, already the world’s biggest and estimated to climb about 60% in the next eight years. The unmistakable contingency of his “at this time” conveyed that Mr Lakshmi welcomes the potential removal of a near ten- year block on overseas takeovers in China’s steel industry – and strongly desires that it materialise as quickly as possible. (“Mittal Backs China for Possible End of Curbs on Mergers,” 16 June) Bloomberg supplied context. Since the ban on overseas control was imposed in 2005, Luxembourg-based ArcelorMittal is one of the few foreign steel mills with investments in China. Now, the world’s top consumer of steel is considering scrapping the ban. This may be a catalyst for global mills to revive a push into China’s $423bn steel sector where demand is seven times greater than in the US, the next-biggest market. “It’s good news that the government is moving forward on reforms and liberalisation on foreign investment,” Mr Mittal said in Loudi. “Whether we will like to invest more in this country or we will not, will depend on the future development of our various projects.” Talks about ending the almost decade-long ban on mergers comes amid a wider push by the leadership in Beijing to boost foreign investment and to open up China’s state-owned industries. The nation has already announced plans to seek private capital for its top energy companies. “It can be a game changer,” Tom Price, a global commodities analyst with UBS AG in Sydney, told Bloomberg . If the game indeed changes, ArcelorMittal will be prominent among the players. But, if its CEO is to be believed, not otherwise. › BHP Billiton Ltd, the world’s biggest metals miner, says that China’s steel output may reach 1.1 billion metric tons over the next ten years, driven by urbanisation. That would be 41% more steel than it made last year. Chinese consumption reached about 700 million tons in 2013, vastly eclipsing the 95.6 million tons used in the US. But Chinese mills, which produce about half the world’s steel, have been plagued by challenges and are seeking better technology and higher-value products – such as automotive steel – to help stem losses and improve productivity. “China

21- 25 October 2014 Hanover, Germany

Sheet metal, Tube, Sections Handling Finished products, Parts, Assemblies Separation, Cutting Joining, Welding Forming Flexible sheet metal working Machine elements Tube / Section working Composites Surface treatment Tools, Dies Data capture / processing Safety at work Controlling, Regulating, Measuring, Inspection Factory and warehouse equipment Research and development CAD/CAM systems Environment protection, Recycling

www.euroblech.com

EB_Intras_87x260_en.indd 1 10

www.read-tpt.com

18/07/2014 09:37

S eptember 2014