Iran Daily reported that steel output growth globally will continue, based on what ArcelorMittal said will be led by the emerging markets and a new group of fast growth nations coined CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) joining the BRIC nations in raising overall demand.

Mr Franz Blancquaert GM of ArcelorMittal said that coking coal per tonne of steel produced however will continue to reduce owing to production efficiencies such as blast furnace injection rates using PCI and gas. Moderate steel growth will be seen in developed countries with European imported met coal demand remaining robust on declining production in Eastern Europe.

Mr Blancquaert said that "We anticipate the rise of the CIVETs to the emerging market. Met coal demand will increase but at lower rates than steel production and steel demand. The evolution of the global economy will be the determining pricing factor."

He said that for higher grade steels, coal with better coking qualities and low impurities need to be used. The relative high prices of dry reduced iron and high quality scrap may limit the future growth of electric arc furnace based steel production, helping support coal use.

(Sourced from Iran Daily)