ArcelorMittal export sales up 33%
Cheap Chinese imports, SA’s lacklustre economy and the continued exodus of top executives affect the company’s local growth
ArcelorMittal SA says domestic demand for primary steel is still weak in a lacklustre South African economy. While the group’s liquid steel production is up 6% in the first quarter ended March 2018, domestic sales fell 2%, even as export sales shot up 33%. The largest steel maker in SA says there is continuous pressure from cheaper imports on downstream products, at the same time rand volatility is “impacting the business significantly”. The strong international demand was however muted by the strengthening of the rand-dollar exchange rate for most of the quarter,” the group said. Meanwhile, 25% tariffs imposed on steel imports into the US by the Trump administration earlier in 2018 could mean that export growth might falter in future. ArcelorMittal SA’s shares had plunged more than 17% to new lows of about R2.31 last week, giving the company a market valuation of R2.6bn. This came after the company announced that chief financial officer Dean Subramanian had resigned after nearly th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.