zfx.mt burgess.drake.oh and aim., page-4

re: mittal struggling with galvanised steel demand http://www.miningweekly.co.za/?show=94062

Extract only.

Mittal battling to keep pace with demand, fend off capital creep


Africa's leading steel producer, Mittal Steel South Africa, admits to being seriously challenged by faster-than-anticipated domestic demand growth, which is likely to see consumption reaching record levels of 5,5-million tons this year.

The company, which traditionally sold about half of its production internationally, is now selling some 80% of its output into the local market and is battling to keep pace with demand for certain steel grades.

It is finding it particularly difficult to satisfy surging demand for galvanised steel, which is used in sheeting applications, and is particularly popular for use in low-cost housing.

Incoming CEO Rick Reato tells Engineering News in an interview that its facilities are running at full tilt and concurs with industry observers who believe domestic demand could rise by as much as one-million tons during 2006, on the 4,5-million achieved in 2005.

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