Oct. 30 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said steel inventories are ``thin'' and customers may need to order more of the metal.

``There is a prospect that as the economy stabilizes at even lower levels of demand, that those inventories are very thin and will need to be replenished,'' Lou Schorsch, head of the company's flat-rolled business in the Americas, said today at a steel conference in Chicago.

Steel demand is plummeting after the credit crisis led to lower construction and auto sales, forcing prices down from record highs this summer. U.S. hot-rolled steel-sheet prices fell to $983 a ton in September, from $1,068 a metric ton in July, Purchasing magazine said in a Sept. 30 report.

Global steel demand is likely to grow an average 5 percent a year through 2020, down from 7 percent in the preceding decade, Schorsch said. China, India and other developing countries will account for most of that demand, Schorsch said.

To contact the reporter on this story: Rob Delaney in Toronto at robdelaney@bloomberg.net.

Last Updated: October 30, 2008 11:17 EDT