[Lakshmi Mittal, the billionaire chief executive of Mittal Group] said that further consolidation in the industry would be required to allow steelmakers flexibility to get to grips with the cyclical nature of the market. ‘Cyclicality in the steel industry will never disappear in its entirety. Nevertheless it can and should be managed.’ Steel prices have tailed off in recent weeks–this after producers had seen record prices and profits over the past 12 months. ‘Today’s softening of the market is not due to any sudden drop in demand but due to an inventory overhang situation created in the market. This situation can be better managed with consolidation of the industry,’ Mittal was quoted as saying in media reports. The steel magnate expects future demand in the steel industry to be driven by the “BRIC” countries–an acronym for Brazil, Russia, India and China.
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