The SteelOrbis Fall '09 Conference and 61st IREPAS meeting has continued with the session two presentations. Mr Mohammed Al-Jabr, VP of ArcelorMittal Middle East, started his presentation by remarking that ArcelorMittal has achieved leading positions in the world's major markets. "We are number one in five regions or four continents: North America, South America Western and Eastern Europe, and Africa. Meanwhile, there is obviously considerable growth potential for ArcelorMittal in the CIS and Asia," he said.
Mr. Al-Jabr informed his listeners about ArcelorMittal's reaction to the crisis. Major industrial and financial initiatives were implemented such as the production cuts announced in September 2008, a debt reduction target was set and a cost reduction plan was initiated in October 2008. By late June 2009, the year-end debt reduction target of US$10 billion was nearly achieved.
He continued his presentation with the prospects for the Middle East market, stating that ArcelorMittal is the largest exporter of steel to the Middle East primarily through its ACIS operations. He said that the Middle Eastern market has been largely unaffected by the crisis as credit availability has remained stable and long-term growth has remained solid due to population growth and global energy requirements. Demand potential remains strong in the Middle East and ArcelorMittal's operations in Ukraine and Kazakhstan are well positioned to serve the countries in the regions.
Mr. Al-Jabr informed the audience that imports volumes, mainly of semis and long products, into the Middle East region grew each year up to 2008. Large scale destocking and falling real estate demand in the UAE resulted in reduced net imports in H1 2009; however, despite the global crisis, expanding regional crude and finished capacity (coming on stream particularly in 2011) is expected to reduce the reliance on imports. In short, the outlook for regional demand is relatively strong compared to other regions of the world.
The ArcelorMittal official also said in his presentation that major iron ore reserves are found in Algeria, Iran and Mauritania, while lower quality reserves are also present in Saudi Arabia. However; although Iran's iron ore production is growing fast and its import activity is also increasing, Mauritania appears to be the only country near the Middle East with a sizeable export capacity.