ArcelorMittal (MT) said Wednesday that while a double-dip in the economic recovery is possible, the slow and steady demand improvement seen so far for its steel products this year indicates there will be a slow gradual economic recovery.

"The recent crisis in Europe reminds us it's still possible," said chief financial officer Aditya Mittal, in response to a question if he forecasts a double dip. "But more likely we see gradual recovery, maybe with a few dips."

The company said in Europe it has idled three blast furnaces mainly due to a seasonal slowdown in demand, when many manufacturers shut for the summer. Capacity utilization will dip to 70% in the third quarter from around 78% in the second, the company said.

It also said growth in China is slowing, but that it should be temporary.

"The Chinese government has demonstrated tremendous control over the economy, therefore we believe it forces a slowdown because it was growing too fast," Mittal said. "Therefore we expect a recovery sooner than later."

Despite the company's cautious outlook in the second half, Mittal said the company still expects 10% global steel demand growth.

-By Devon Maylie; Dow Jones Newswires; (4420) 7842 9483; devon.maylie@dowjones.com
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