The world's second-largest steel maker Arcelor is aiming to raise prices for steel in the fourth quarter, its chief executive officer Guy Dolle was quoted as saying on Tuesday.

"We will raise prices of our flat products by several dozen euros a tonne, or less than 10 percent, for delivery in the fourth quarter," Guy Dolle told Belgian daily.

The paper also reported him saying that steel stocks among clients have returned practically to normal. He expected a rise in apparent demand in the fourth quarter of this year and the first of next year.

World steel prices nearly doubled in 2004 due to strong demand from China, but spot prices have fallen 15 to 20 percent since December due to destocking -- clients had previously built up stocks amid fears of shortages -- and sagging demand in some markets.

Arcelor, whose main business is flat steel, said in July it had expected stocks to return to normal by the end of the summer, and Dolle said the first signs of a recovery were seen in June and July.

He reiterated the company's full-year results will beat last year's when it earned 4.34 billion euros in core profits.

"I declared that the 2005 results will be better than those of the previous (year) which were excellent. Despite the slowdown that we have seen, I confirm that the results of this year will be better than in 2004," he said.

The third quarter, usually the worst in the cycle, will still be good, both in terms of volumes and prices, Dolle said.