On Tuesday Arcelor Mittal announced that’s its net profit of the third quarter has gone up by forty eight percent but it had issued warning that tough times await the company as it can fore see lowering of products prices and weakening demand of steel.

The No. 1 global steel maker made a net profit of one decimal three five billion dollars compared to nine hundred and ten million dollars of the corresponding period of the previous fiscal. The company saw a rise in its sales taking it to twenty one decimal zero four billion dollars from sixteen decimal one seven billion dollars.

Lakshmi Mittal the chief executive of the company stated that the performance of their business was a way too low as volume of business did not grow much all through the year, along with weaker spot prices and higher costs.

He added saying that they are cautious about their fourth quarter results as demand remained low and input prices also remained high. The firm didn’t make any forecast for the coming 2011.

Aditya Mittal the Chief Financial Officer of the steelmaking firm stated that the overall demand of steel worldwide will increase in the tune of six percent in the year 2011. He can’t foresee demand going up in the remaining part of
2010.

According to analysts the indication is not good for steelmakers as their ability to make profit in an environment which is not very conducive for steel business is getting thwarted by the challenging environment. Herman Reith, a steel analyst at Frankfurt’s BHF Bank stated that the forecast for 2011 is quite depressing there will be a considerable amount of squeezing in margin of profits of steel makers.

Forecast for 2011 is not good affirmed MF global analyst Charlie Dove –Edwin . Costs of materials might reduce and bring down the prices of steel as well. It will be difficult for companies to make profits.