According to Mr LN Mittal CEO of ArcelorMittal, world steel demand will fall 15 to 20% in 2009, the steepest decline since World War Two.
Mr Mittal during a shareholders meeting told that Chinese demand was showing signs of improving and destocking in the United States was drawing to a close.
The company has halved production, but Mr Mittal said that did not reflect demand. ArcelorMittal said demand should start to normalize once destocking is complete worldwide, provisionally at the end of the second quarter.
Mr Mittal told shareholders that steelmakers had to ensure that, when the market did improve, production capacity was brought back at an appropriate speed so they do not make steel which cannot be sold.
The World Steel Association forecast late last month steel demand would tumble by 15% in 2009.