Mr LN Mittal CEO of ArcelorMittal said that they are talking to customers about switching to quarterly contracts from annual price benchmarks, following similar moves by mining companies.

Mr Mittal in an interview in Luxembourg said that “The discussion is ongoing with all our customers who normally enter into annual benchmarks. This is an ongoing process and customers do understand the new pricing mechanism and the increase in raw material prices.”

Mr Mittal said that “Our business model will have to change. The company’s customers “will also have to change their business models.”

ArcelorMittal sells 20% of its steel on annual contracts.

As per report the company plans to use about 80% of its production capacity in the second quarter after cutting output as much as 50% last year.