ArcelorMittal pins its hopes on exports
Low steel demand in SA prompts search for opportunities elsewhere
With current steel demand in SA almost at a 10-year low, steelmaker ArcelorMittal is looking for export opportunities in the rest of Africa, says CEO Kobus Verster. The domestic steel demand looks set to be lethargic for longer, with economic growth being slow. The IMF this week lowered its economic forecast for 2018 to 0.8%, from 1.5%. It also lowered the 2019 forecast from 1.7% to 1.4%. “Most steel companies require a reasonably strong local demand to be profitable. We are at the bottom of the cycle at this point in time and steel demand is severely impacted, with the current steel consumption in SA almost at a 10-year low,” Verster said. He said the company wanted a bigger market share in the rest of Africa as there was no evidence of growth in domestic demand. The foray into new markets was among steps the company was taking to improve financial and operational performance. These included restarting the Vaal Meltshop plant in Vereeniging.
Verster said the company had prior...
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