ArcelorMittal SA will only return to full output when demand returns

accreditation

Africa's largest steel producer, ArcelorMittal SA's return to full production will be informed by demand.

On Sunday, President Cyril Ramaphosa announced a further easing of Covid-19 lockdown regulations to Level 3, allowing industries such as steelmaking to resume full operations.

However, the steelmaker "...will only fully restart operations as the demand for steel becomes visible," it said in a statement.

The local demand for steel was at its lowest before the Covid-19 pandemic shutdown, which also hit exports as governments around the world enforced measures to contain the spread of the virus.

However, the company was confident that the adjustment of lockdown regulations would boost demand from local customers, cautioning that "the harsh reality is that no industry has remained untouched by the pandemic".

"It is likely that it will be many months, if not years, before the economy starts to revive and the demand for steel begins to grow again," it said.

In February, ArcelorMittal revealed that it had incurred a loss of R4.68bn for the year to 31 December 2019, as the "downturn in world steel" deepened.

The company supplies more than 60% of the steel used in South Africa, and has operations in Vanderbijlpark, Vereeniging, Saldanha and Newcastle. It stated that that available finished stock and work in-progress were sufficient to support delivery of confirmed orders to the end of June.

Compiled by Sibongile Khumalo

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.65
-1.2%
Rand - Pound
20.95
-1.2%
Rand - Euro
17.45
-1.2%
Rand - Aus dollar
10.94
-0.5%
Rand - Yen
0.14
-1.2%
Gold
1,787.63
-0.6%
Silver
22.36
-1.8%
Palladium
2,384.00
+0.4%
Platinum
1,009.00
-1.7%
Brent Crude
89.34
-0.7%
Top 40
67,021
-0.1%
All Share
73,455
-0.1%
Resource 10
74,081
-1.4%
Industrial 25
90,993
+0.6%
Financial 15
15,218
+1.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot