(3 minutes read)
· Africa’s largest steel producer, ArcelorMittal SA’ is waiting
in the wings to return to full production; the company says that it
would be possible only when the demand returns in full
· Steel manufacturing companies in South Africa have been
underperforming on account of the long phase of recession the economy
was going through for quite some time, which got accentuated after
the pandemic.
Africa’s largest steel producer, ArcelorMittal SA’ is waiting in the
wings to return to full production. The company says that it would be
possible only when the demand returns in full. The South African
government announced a further easing of Covid-19 lockdown regulations
to Level 3, allowing industries such as steelmaking to resume full
operations. However, the company officials point out that it could
return to full production only when the demand bounces back.
Steel manufacturing companies in South Africa have been
underperforming on account of the long phase of recession the economy
was going through for quite some time, which got accentuated after
the pandemic. That also affected the exports since most of the steel
importing countries were under lockdown. The company was confident
that the adjustment of lockdown regulations would boost demand from
local customers. The company is confident that the relaxations in the
lockdown will boost the demand for steel not only in South Africa but
also all other countries importing steel from the country.
In February, ArcelorMittal revealed that it had incurred a loss of
R4.68 billion for the year to 31 December 2019, as the “downturn in
world steel” deepened. The company supplies more than 60% of the steel
used in South Africa and has operations in Vanderbijlpark,
Vereeniging, Saldanha and Newcastle. It stated that the available
finished stock and work in-progress were sufficient to support
delivery of confirmed orders to the end of June.
