ArcelorMittal, the world's biggest steelmaker, has said global demand for steel may drop 15 to 20 percent this year due to the weakness in the European and the US economies.
As hundreds of workers protested outside, ArcelorMittal CEO Lakshmi Mittal told an annual shareholders' meeting today at the company's Luxembourg headquarters, "There's no point in making steel that we cannot sell. We are really frustrated as we want to make steel."
"The environment remains challenging and production cuts will remain at 50 percent of capacity. This is probably the worst crisis since the Second World War," continued Mr. Mittal.
"As destocking ends we shall see an improvement in the US and Europe, even though demand remains weak," Mr. Mittal stated, adding that customers will have completed running down stocks globally by the end of this quarter.
Meanwhile, protesters faced off with riot police, blocking streets around the ArcelorMittal building. It is reported that about 2,000 demonstrators arrived from France and Belgium.
French Confederation of Christian Workers union member Patrick Vergerio said at the scene that they were calling on company CEO Lakshmi Mittal to honor his promises and keep the steel plants open, adding that the policies of the company and the international situation made them fear for their livelihoods.