ArcelorMittal CFO Says China's Steel Industry Losses Unsustainable

By Alex MacDonald

LONDON--The losses that Chinese steel makers are racking up due to the continued sale of cheap steel at unsustainably low prices will likely impact the country's economy if the issue isn't resolved soon, ArcelorMittal's (MT) chief financial officer said Friday.

It is also affecting steel markets worldwide as Chinese steel makers export record amounts of steel to offset weaker demand at home, Aditya Mittal told reporters following third-quarter results from the world's largest steelmaker.

In the first nine months of the year, Chinese steel producers have accumulated $8 billion in losses, most of them in the third quarter, Mr. Mittal noted, citing figures from the China's steel association.

"Eventually...these losses will mount up, and are mounting, and if no solution is found, clearly that will have other consequences for the Chinese economy," Mr. Mittal said.

-Write to Alex MacDonald at [e-mail]

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November 06, 2015 04:18 ET (09:18 GMT)

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