ArcelorMittal SA sinks deeper into the red
The steel maker’s loss more than trebled, as it struggled against low demand, falling sales and rising input costs
ArcelorMittal SA sank deeper into the red in the six months to June, as the struggling steel producer buckled under the weight of unrelentingly low steel demand, rising input costs and a stronger rand.The headline loss for the review period widened to R1.61bn, from R458m in the year-earlier period, as the costs of imported coking coal and iron ore rose, dealing a further blow to the company, whose fortunes are closely tied to the performance of the economy.High international coal and iron ore prices were the main contributor to the increase in raw material costs, the company said on Thursday in its results statement. Electricity costs also increased due to annual electricity price increases.Total steel sales volumes fell by 95,000 tonnes, with local sales dropping 9.2%, which the company attributed to difficult trading conditions. Export sales rose 15.9%, helping to mitigate lower sales in SA.Revenue rose 12.6% to R19.151bn, mainly due to an 18.9% increase in average net realised st...
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