UPDATE 1-ArcelorMittal to study new plant in Brazil

(Adds details, more quotes)

LONDON Nov 16 (Reuters) - ArcelorMittal (ISPA.AS) is seriously considering a feasibility study for a new steel plant in Brazil as it sees strong prospects for demand there, a senior executive said on Monday.

"We're particularly excited for BRIC countries," Michel Wurth, a member of the group management board, told a steel conference organized by Metal Bulletin.

BRIC stands for the four emerging economic powers Brazil, Russia, India and China.

"We are committed to a significant investment in Brazil. We're also looking very seriously for feasibility study for a new steel plant there," he said, without giving details.

The company, the world's biggest steelmaker, had announced a $5 billion investment budget for Brazil before the global economic crisis. Wurth did not say if the new plant was within this existing budget.

Lakshmi Mittal, company chairman and chief executive, said last month that long-term plans under discussion for Brazil went well beyond the $5 billion in investments, including a new steel slab plant.[ID:nN0940559]

He said one potential investment opportunity was a 5-million-tonne-a-year steel slab plant in Anchieta, Espirito Santo, with Brazilian iron ore giant Vale (VALE5.SA).[ID:nN0591265]

Wurth said he expected improvement in global demand in 2010 as the economy recovers but predicted demand in the developed world would be 25 percent lower next year compared with the peak in 2008.

The company has started to bring back some idled capacity as orders for steel improve, Wurth said.

"In the fourth quarter we expect the capacity usage to be at 70 percent," he said.

At the recession's peak, the company's capacity utilisation rate was around 60 percent.

Despite a gradual recovery in demand next year, the economy and the industry remain fragile and the demand is not expected to fully normalise next year, he said.

(Reporting by Humeyra Pamuk, Editing by Angus MacSwan)