Arcelor declares loss for Q1

Arcelor declares loss for Q1

One of the world's major steel companies Arcelor formed from a merger of Aceralia-Spain, Usinor of France, Arbed of Luxemburg in 2001 declared €24million of loss for the first quarter of this year. In fact the company is aiming to attain some 700million euro cost saving from the merger as from 2006.The officials of Arcelor state that this loss is due to the very low steel price levels and they are expecting to see some profit in the next quarter as the demand is increasing. Since April the flat carbon steel prices have started to increase due to lowered stock situations and so the demand, which is thought to bring some profit for the second quarter. In addition to that Arcelor reveals that they are planning to raise flat prices by at least €30/ton as of July and also mention another increase possibility by the end of the year. Company recorded a €24million loss in the first quarter of this year. Last year's figure for the same period was €186million profit.