Mr Heinz Joerg Fuhrmann CFO of German steel maker Salzgitter AG said that it expects steel markets to pick up in the third quarter of 2009.

Mr Fuhrmann said that the first quarter of 2009 will be a tough period for the steel industry. He added that "The second quarter may be slightly better and in the third quarter at the latest we should see an improvement, but perhaps this will not be as steep as the one we have seen in February 2008."

He also said that destocking in the steel market has begun in light falling demand. He added that "This might come to an end late in the first quarter of 2009 or in the second quarter, if it has the same velocity as currently. We are talking about further increases."

Mr Fuhrmann added that he expects iron ore prices to fall in 2009, after increasing by up to 200% at the beginning of 2008, before the steel industry headed into the current downturn.