Rio Tinto (RTP), meanwhile, said it will pour $2.2 billion into an expansion o fits iron ore mine in Brazil to help meet the demand throughout South America and the Middle East, the Associated Press reports. Iron ore is a key ingredient in steel production.
Will the global demand for steel keep up the pace? ArcelorMittal predicts growth of 3% to 5% a year in the medium term, which is down from 7% in recent years.
According to the World Coal Institute, China is the top steel producer, and accounted for 34% of production in 2006. China is also the world’s top consumer of steel.
Market Vectors Steel (SLX) holds U.S. Steel at 5%, 13.4% of ArcelorMittal and 13.7% of Rio Tinto. The fund is 2.4% below its trend line.