ArcelorMittal SA’s loss widens as input costs soar
The group was hit by increasing debt and input costs as its new CEO bemoans the lack of infrastructure spending in South Africa
ArcelorMittal SA posted a loss of R5.1bn for the year to December 2017, as input costs — especially for crucial hard coking coal supplies from Australia — soared amid sharply rising debt and associated interest costs. This comes despite the government imposing normative 10% tariffs on a flood of cheaper steel imports — mainly from China — and also basic safeguards on various steel products. Along with the designation of 100% local content for structural steel procurement by state entities, this has helped shelter the industry. Yet more downstream tariffs are needed to help SA’s steel beneficiators and exporters, says ArcelorMittal SA departing CEO Wim de Klerk. Revenue rose 19% to R39bn following a 15% rise in average net steel prices. However, the cost per tonne of liquid steel output jumped 16% as cost of sales rose 21% and raw materials costs soared an average 27%. “There is a lack of infrastructure spending in SA,” the group’s new CEO, Kobus Verster, said on Wednesday as he star...
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