ArcelorMittal CEO sees bumpy ride in 2010 - paper

BRUSSELS Oct 5 (Reuters) - ArcelorMittal (ISPA.AS), the world's largest steelmaker, expects steel demand to recover next year, but the industry is in for a bumpy ride in 2010, its chairman told the Financial Times in an interview.

"I am optimistic about the emerging economies (in terms of steel demand). But I am cautious when it comes to the industrialised world," Lakshmi Mittal, who is also the group's chief executive, said.

Mittal stuck by his previous forecast of a 10 percent rise in global steel demand next year, the Financial Times said.

"My overall feeling is that, next year (in the steel industry), we will still be in for a bumpy ride," he said.

Mittal has said he expects domestic demand in China to rise by more than 15 percent this year, with demand cooling in 2010.

Output in China would probably carry on growing in 2010, but by only 5 percent, Mittal told the Financial Times.

Prospects for a world steel industry rebound could be blown off course by a strong rise in exports from China, Mittal said.

"We have to monitor this (net exports) because they could have a negative influence on what happens in the rest of the world," the Financial Times quoted Mittal as saying.

The global downturn has forced ArcelorMittal and rivals to run at half capacity in the first half of 2009 with spot prices down 60 percent, while destocking has exacerbated the problem.

Demand and output in the United States, western Europe and Japan could fall by as much as 35 percent this year and then come back in 2010 by perhaps 15 percent, Mittal said. (Reporting by Antonia van de Velde; Editing by Hans Peters)