steel major ArcelorMittal SA has strengthened its mining team
with the addition of two iron ore traders from Australian
investment bank Macquarie Group Ltd.
Macquaries Singapore-based iron ore trader, joined
Luxembourg-based ArcelorMittal in August after six years at the
investment bank. He was joined at the steelmaker by a second,
as yet unnamed, Macquarie iron ore trader.
ArcelorMittals steel profits have been severely hit by
slack European demand, iron ore shipments from its operations
in North America and Africa are growing and are expected to
drive a recovery the groups underlying profits this
The steelmaker shipped
3 million tonnes of iron ore from its Liberian operations alone
in the first eight months of 2013, and confirmed that its
$1.5-billion plan was on schedule to start ramping up to 15
million tonnes per year by 2015.
The hires suggest that
the steelmaker is looking to enter the iron ore swaps market,
iron ore derivatives brokers said.
While larger Chinese
steelmakers have started to use iron ore derivatives to hedge
their raw material input costs, European steelmakers have so
far been reluctant to participate.
confirmed the hires, but doesnt have any plans to enter
the iron ore and steel derivatives markets "at this time," a
company spokesman told AMM sister publication
Steel First. "We have been managing raw material
prices through a hedging program that has been in place for 25
A version of this
article was first published in AMM sister publication Steel