China still not addressed issue of steel overcapacity - ArcelorMittal

BRUSSELS (Reuters) - China's failure to address overcapacity of its steel industry means risks remain for the global sector, ArcelorMittal (ISPA.AS) chief financial officer Aditya Mittal said on Friday.

ArcelorMittal said on Friday that its was slightly more upbeat on the steel sector and raised its forecast for steel consumption in China this year, although also expressed caution.

"Risks remain in China as China has not yet addressed its structural overcapacity issue. You can't remove overcapacity in an industry in three months. That will take time," Mittal told a conference call following the publication of ArcelorMittal's first-quarter results.

Mittal said that in January and February Chinese steel exports were up 8 percent.

Seven countries or blocs, including the United States and the European Union, called last month for urgent action to address global steel overcapacity, but have failed to agree common measures with China. Beijing has said it has taken the toughest action to cut production and that the issue is a global one.

(Reporting by Robert-Jan Bartunek; editing by Philip Blenkinsop)