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Mittal worried at China's sops for steel shipment

Source: PTI
June 24, 2009 18:48 IST

Expressing concern at China giving incentives for steel exports, ArcelorMittal chief L N Mittal has said that such steps could further delay the recovery of the sector, which is anyway unlikely before 2011.

"The recovery could also be negatively impacted by possible increases in subsidies and instances of dumping. The recent news that China has reinstated export rebate for its steel producers is (of concern), particularly in the urrent climate," the NRI billionaire said at a conference in New York on Tuesday.

". . .a full recovery will be slow and progressive. Peter (figuratively) may well be correct when he says we will not see a return to very strong levels of demand before 2011," he added.

China had earlier this month announced up to 9 per cent rebate on exports of steel products to boost the shipment and production of the commodity.

The Indian steel industry, along with its global counterparts, had taken strong exception to it and demanded import-restricting measures be imposed urgently.

After a period of gloom in the past three quarters when demand as well as prices of the commodity crashed, the global steel industry is witnessing 'green shoots' of recovery, Mittal said.

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