Arcelor SA, which lost its place as the No. 1 steelmaker to Mittal Steel Co. NV last month, will reduce production in Europe to protect prices amid slowing demand.
The company will cut European carbon steel output by 1.5 million tons in the first half of 2005, helping to prevent a drop in prices, Luxembourg-based Arcelor said today in a statement.
“There is no scenario where we can increase our prices before the fourth quarter,” Chief Executive Guy Dolle said today in an interview with Bloomberg. Arcelor will cut production “in order to help all the inventory pipe to be emptied.”