The headline loss for the period was compared to a headline loss of 123 million rand in the corresponding period last year.
[DATA ACL:ArcelorMittal] is a steel and mining company headquartered in Luxembourg and is present in South and North America, Europe, Asia and Africa.
(WATCH VIDEO: ArcelorMittal’s impact on S.Africa)
Revenue however increased 13 per cent to 17.9 billion rand for the period under review from 15.8 billion rand in 2013, primarily due to an 8 per cent increase in average net realised prices.
Earnings before interest, taxes, depreciation and amortisation was 167 million rand lower at 810 million rand for the period under review from 977 million rand in 2013.
ArcelorMittal’s liquid steel production was 2,386,000 tonnes, a decrease of 95,000 tonnes compared to the same period last year, due to the planned shutdown for the reline of the blast furnace in Newcastle, which began in May 2014.
“The sub-Saharan African region continues to offer market opportunities for steel as large infrastructure investments are being implemented, with a wider range of projects in roads, rail, housing development and energy projects, and more investments in the mining sector,” ArcelorMittal explained.
“Prospects for further growth remains high as new investments in the oil and gas sectors are also stimulating steel demand.”
Liquid steel production was 4 per cent lower, a decrease of 95,000 tonnes, while prices for flat and long steel rose 7 per cent and 8 per cent respectively.
Steel shipments were up 3 per cent with export shipments increasing 59 per cent while local shipments decreased 10 per cent.
Cash costs of hot rolled coil and billets increased 15 per cent and 14 per cent respectively.
Sishen iron ore prices rose 18 per cent, and Beeshoek increased 13 per cent. Tshikondeni coal climbed 18 per cent, pulverized coal also climbed six per cent and scrap climbed 11 per cent. Zinc and tin prices climbed 18 per cent and 15 per cent respectively.
“Import coal prices declined 20 per cent in US dollars while pellets increased 3 per cent. In rand terms, import coal prices decreased 3 per cent while pellets increased 14 per cent,” ArcelorMittal added.
“Notwithstanding the tough economic conditions the company operates under, key environmental projects remain a focus area in order to ensure environmental compliance.”