ArcelorMittal SA, whose share price has nearly tripled over the past year, is likely to continue its rebound in 2017, according to a note on the South African steel industry released by BMI Research on Friday. ArcelorMittal SA’s September quarter profits were its highest since 2014, and BMI forecast its earnings would continue to improve throughout 2017 as iron ore prices gradually decline and there is growth in GDP for the first time in three years. BMI expects SA’s crude steel production to reach 6.2-million tonnes in 2017, representing a 1.5% rebound from a 4.5% decline in 2016. SA’s steel consumption is expected to be 6.1-million tonnes in 2017, 2% more than in 2016. This turnaround comes after an average steel production growth rate of 10.8% during the fourth quarter of 2016, the highest quarterly growth rate for the sector in a year, the research note said. "This uptrend will be boosted throughout 2017 by a gradual decline in iron ore prices, which we expect to retest lows of ...
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