Outlook for Arcelor Mittal (MT) in the Years Ahead

Arcelor Mittal (NYSE:MT) will no doubt be affected by the proposed slowdown in steel production in China which will also affect imports, as China will start rolling blackouts earlier than usual, which always is directed towards the steel industry in the country in the beginning of the process and onwards.

Tightening of the economy is also a major factor as China continues to attempt to rein in inflation after overstimulating the economy by printing money.

According to the China Iron & Steel Association, the Chinese government is pushing to slow down economic growth, with one of the consequences being the demand for steel slowing down.

Expectations are steel consumption in China will drop by up to 4.6 percent in 2011, with the minimum outlook being a 2.6 percent drop in consumption.

Higher input costs and product prices are weighing heavily on the industry, and it's not clear how much the industry will be able to past on to their customers before they cut back on buying.

Industry observers see the next five year as being challenging for the industry as far as growth goes.

Arcelor Mittal participates in the production and marketing of a wide variety of steel products around the world.

Arcelor Mittal closed Friday at $33.43, falling $1.35, or 3.88 percent.