ArcelorMittal will need a cast-iron stomach to prevail
Demand is soft in a struggling economy, while the steelmaker’s costs are rising
ArcelorMittal SA is in the throes of despair because it may be a while before Africa’s largest steelmaker sees a rebound in demand thanks to a sputtering economy that is barely growing.
The Vanderbijlpark-based company has seen its fortunes tumble as the slowdown in economic growth has put the brakes on steel consumption. In a perfect storm scenario, ArcelorMittal SA’s costs — especially electricity, rail and port — have also been rising.