ArcelorMittal to expand in iron ore to control costs

ArcelorMittal, the world’s largest steelmaker, said it plans to buy more iron ore assets to guard against raw-material price changes as the industry moves to shorter-term contracts.

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ArcelorMittal, the world’s largest steelmaker, said it plans to buy more iron ore assets to guard against raw-material price changes as the industry moves to shorter-term contracts.

The switch to quarterly iron-ore pricing from annual accords will prompt ArcelorMittal to increase "vertical integration," Chief Executive Officer Lakshmi Mittal said Tuesday at the Steel Success Strategies conference in New York.

Mittal said he isn't in favour of quarterly pricing, which could be "dangerous." Chinese steel demand, which rose 25 per cent last year, created an imbalance in iron ore markets, he said.

Chinese demand may rise 10 per cent this year, higher than his earlier forecast of 5 per cent, Mittal said.