November 22, 2008

Mr Rocca sees slow down in global steel demand

According to Mr Paolo Rocca chairman of Tenaris and vice chairman of the International Iron and Steel Institute, global steel demand will begin to slow in three years because of unsustainable price increases for iron ore and other raw materials.

Mr Rocca said that steel demand will continue to grow at around 6% a year through 2010, before slowing to about 4.5% in 2011 to 2015. He added that prices of iron ore, the main steelmaking ingredient, have quadrupled and coking coal has risen sixfold since 2003.

Mr Rocca said that “No financial system can sustain this inflationary pressure. The world has reached a limit on availability of non renewable resources.''