Despite reporting a steep y-o-y fall in revenues and profitability for 3Q 09, conditions have improved significantly for Arcelor Mittal sequentially as steel demand shows signs of recovery after experiencing a steep dip in 1H 09. Considering improving dynamics for steel demand we maintain our positive outlook towards the ADR at current price levels. Therefore we reiterate the stock a BUY. We will reassess…

The Arcelor Mittal ADR has appreciated significantly since our 1Q 09 update report, in line with recovery in global commodity and equity markets, reflecting investor speculation that the global economic recession may have bottomed out. We are encouraged by Management's decision to restart production at some of its facilities, and by the company's better-than-expected 2Q 09 earnings. Therefore, even though the target price derived in our last update report does not…

We continue to expect the deterioration in global automobile sales and construction activities to impact the company's performance over the rest of the year, with the company forecasting a 10% fall in global demand. Nevertheless, we expect demand to improve from 2H 09, as the impact of multiple stimulus packages boosts the steel industry during 2H 09. The company has highlighted recovery in Brazil and particularly…