BNAmericas reported that ArcelorMittal is observing signs of improved steel demand and therefore aims to increase Brazilian output to 80% capacity in the third quarter from 50% in Q1.

Mr Lou Schorsch CEO of the ArcelorMittal's Flat Carbon Americas division said that "Auto sales in Brazil declined in 4Q08, but in May the preliminary numbers of auto sales were up 2% versus May 2008.

Mr Schorsch at the RBC Capital Markets Global Mining and Materials Conference said that the emerging markets, including Latin America, have proven to be more resilient than developed ones in steel usage.

ArcelorMittal sold 4.55 million tonne of steel products from its Long Carbon Americas and Europe division in Q4 of 2008, while its Flat Carbon Americas branch sold 3.93 million tonne in the period.

ArcelorMittal's operations in Latin America include the ArcelorMittal Brasil subsidiary that holds numerous operations in Brazil and an asset in Argentina. The company also has operations in Mexico, Costa Rica and Venezuela.

(Sourced from BNAmericas)