Steel prices boost Arcelor profit

Aditya Mittal of ArcelorMittal says customers are still get steel below market price

ArcelorMittal, the world's largest steelmaker, has seen second-quarter profits more than double after it managed to increase prices.

Profits were $5.8bn ($2.9bn) in the three months to 30 June, compared with $2.7bn a year earlier.

The company said it had achieved "significant" price increases in contracts which had been renegotiated.

It also added that efforts to secure its own access to raw materials amid sky-high global prices were paying off.

The company now supplies 45% of its own iron ore and 20% of its own coking coal.

"We continue to look for opportunities to further enhance our raw material self-sufficiency, with recent investments being announced in Africa, the Americas and Australia," said Arcelor chairman and chief executive Lakshmi Mittal.

Steel shipments rose only slightly to 29.8 million metric tonnes.

The firm said global demand for steel was losing pace, with Arcelor forecasting growth of 3 to 5% this year, down from 7% in recent years.

The world's largest steelmaker by volume, the firm was created by Mittal Steel's 2006 takeover of Arcelor. The group employs 310,000 staff.