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* Finland's Ruukki says hard to estimate demand
* Ruukki hasn't yet given guidance for 2010
* Does not use LME for metal purchases or steel sales
Demand for products such as iron ore and zinc used to make steel will rise slowly, but the outlook is cloudy and forecasting future needs is difficult, Finnish steelmaker Rautaruukki told Reuters on Thursday.
Rautaruukki, or Ruukki as it is often called, used more than 3 million tonnes of iron ore last year and 45,000 tonnes of zinc -- used to galvanise steel. But it would not give levels for this year or next.
"It is hard to estimate whether there will be any major change in end-demand (for steel consumption in Europe) from current levels as visibility is still quite limited," said Mikko Hietanen, chief financial officer at Ruukki.
"It still remains difficult to forecast demand and business predictability is thus lower than usual. We have not given any guidance for 2010 yet," Hietanen said in response to a question on demand for metals and metal products.
However, Ruukki did say it had in the first nine months of this year produced 1.265 million tonnes of flat carbon steel -- used in the construction and engineering industries -- compared with 2.054 million tonnes last year.
"Steel production capacity utilisation rate during the third quarter was noticeably higher than during the first half of the year," Hietanen said.
Ruukki added that one of its two blast furnaces idled since December 2008 at the Raahe Works was restarted in early May.
"It reached its target capacity utilisation rate in mid-June. Since then it has operated at a rate of around 80-85 per cent."
The blast furnace was restarted to help build reserve stocks and safeguard deliveries to customers during production disruptions in 2010 when maintenance work will be carried out.
"One blast furnace will be shut for around two months and it is expected to take between four and six weeks from start-up before it returns to normal production levels," Ruukki said.
"The other blast furnace is planned to be stopped for similar maintenance during 2011."
Ruukki uses the London Metal Exchange to benchmark prices, but does not use it to buy metal.
Zinc, nickel and ferro alloys such as ferro manganese, ferro molybdenum and ferro chrome, used to make high strength and wear resistant steels, are bought from merchants or directly from producers, the company said.
"Ruukki is basically not doing spot trades in steel, we operate on a contractual basis," it said. "We do not use the London Metal Exchange, not for selling steel nor for purchases."