Tomahawk, WI 02/10/2014 (BasicsMedia) – It is not everyday that you come across a company that is very optimistic despite posting huge losses. If you have never heard of such a company, or come across one, then you need to be introduced to ArcelorMittal (ADR) (NYSE:MT). ArcelorMittal is the biggest maker of steel in the entire world. When it posted its fourth quarter of 2013 financial results, the company announced a huge $1.3 billion loss. Rather than allowing this massive loss to affect its projections going forward, the company has said that it believes 2014 will be a very good year.

ArcelorMittal (ADR) (NYSE:MT) is responsible for more than 5 percent of the steel found in the world today. It offers a fairly accurate picture of the health of the manufacturing sector. The reason behind Arcelor’s belief that 2014 will be a year full of profits is that it expects the US and Europe to show a strong economic performance this year. Once this happens, the Arcelor believes that the demand for steel in these two regions will lead to stronger sales, which would in turn birth higher revenues and increased profits. This will happen despite poor sales in China and Brazil.

The expectation is that the global steel market will recover in 2014. Steel is the raw material used in industries that deal with construction, machinery, car making, as well as other domestic and commercial uses. The company expects to see a better market for steel in 2014 in regions such as US, Canada, Japan, Europe, Asia-Pacific, The Middle East, Latin America, and Africa in that order. However, the fact that the market and demand for steel in Brazil and China will not follow similar trajectory, is a bit worrying not only for ArcelorMittal (ADR) (NYSE:MT), but also other steel makers in the world.

ArcelorMittal (ADR) (NYSE:MT) expects to see an upsurge in capital spending in 2014. If the construction industry picks up in the manner forecast by Arcelor, then 2014 should be a year of great results in the financial aspect or steel makers around the globe. The construction industry uses and requires more steel than any other, and if it does well this year, it should be able to reverse the losses it reported during the last quarter. In the US, there are already signs indicating that the building and construction industry is on the up, and this should continue for the remainder of this year.

The production of steel around the globe is set to rise by as much as 3.6 percent in 2014, which would augur well for ArcelorMittal (ADR) (NYSE:MT). Europe will probably lead the way in terms of recovery, doing much better than what is expected from the US. The market for steel in Europe has been on a downward trend for the past six years, and is set for a positive change in 2014. Where Arcelor and other steel makers are unsure of is in the area of pricing. None of the major steel makers looks forward to better prices in 2014, but if demand outstrips supply, prices will shoot up.

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