Bump in ArcelorMittal SA’s quarterly sales as import duties are implemented
Steel producer ArcelorMittal SA said on Friday that it was able to increase local sales in the three months to September, as a result of the implementation of the safeguard measures aimed at limiting steel imports.
ArcelorMittal SA and other role players in the steel industry have lobbied the government for measures that would shield them against the cheap imports, mainly from China.
Local sales were 6% higher in the review quarter, mainly due to higher local demand for flat steel products after the government implemented import duties on hot rolled coil products. The quarter compares the same period a year ago.
Export sales rose 48.5%, with flat steel products increasing by 22,000 tonnes and long steel products by 44,000 tonnes. The stronger rand, however, dampened export sales, the company said in a statement.
The company also raised concerns about the costs of electricity and rail, which it said would affect the viability of some its plants.
The share price was off 2.29% to R6.40 in mid-morning trade on the JSE, valuing the company at R7.28bn.