ArcelorMittal said that the mining industry should consider allowing steelmakers to buy part of their iron ore needs using annual pricing contracts.
Mr Michael Pfitzner EVP for commercial coordination and marketing said that "I strongly advocate that the mining industry reflects on short term pricing policy and develops an option for us to buy a part of our volumes at annual prices.”
He added that "I advocate this even if it results in a mark up of some percent, which I am sure our industrial customers are prepared to accept, if that in turn protects them against unforeseeable price risk.”
As part of its growth strategy, ArcelorMittal is going to focus on quality over quantity. Mr Pfitzner said that "Growth in future has to do more with qualitative growth, and less with quantitative growth.”
ArcelorMittal hopes to take its own iron ore production to 100 million tonnes in 2015 from 65 million tonnes this year.
Globally, steel demand was expected to increase by 6 % in 2011, Mr Pfitzner said, but in Europe capacity would outweigh demand for the next 12 to 18 months.
Mr Pfitzner said that "Currently installed capacity in Europe will exceed demand from next 12 to 18 months, in some parts of Europe, much longer.