ArcelorMittal South Africa loss deepens

 ArcelorMittal South Africa reported a deeper first-half loss on Thursday but forecast growth in steel demand in Africa in the second half.

Headline losses grew to 1.619 billion rand ($125.5 million)for the six months to June 30 from a loss of 458 million a year earlier.

The company cited higher costs for imported coking coal and iron ore, exchange rate volatility and continued weakening of the South African economy.

Shares in the company, majority-owned by top global producer ArcelorMittal, were down 2.6 percent in early trade.

“Projections are that Africa will experience growth in demand on the order of 2.3 percent,” ArcelorMittal said in its earnings statement.

African markets, specifically in the west and east sub-Saharan regions, have remained positive due to infrastructure investments in rail, roads and energy, it said.

Steel consumption in South Africa fell by 3.8 percent in the first half due to subdued economic growth and continued imports of large quantities of steel, especially from China, it said.

The steelmaker has long complained about cheap imports eating into its business.

South Africa plans to impose emergency “safeguard” tariffs on imports of certain flat hot-rolled steel products from July due to the damage done to domestic production.

The tariff is to stay in place for three years and fall from 12 percent in the first year to 10 percent in the second year and 8 percent in the third.

($1 = 12.8974 rand)

Reporting by Tanisha Heiberg; editing by Ed Stoddard and Jason Neely

Related Content

Namibia’s Ministry of Mines and Energy is optimistic about the future

With the recently introduced reforms in Namibia’s renewable energy sector and the growing presence and entry of international oil companies entering the hydrocarbons sector, the Ministry of Mines and Energy is optimistic about the country’s energy future. “There are very positive and encouraging signs when we talk about the hydrocarbons sector. We have had a couple of investors that are keen on entering the market and potentially finding something,” said Hon. Tom Alwee

Equatorial Guinea awards Contract to American Company Nexant for Methanol-to-Derivatives Plant

The Ministry of Mines and Hydrocarbons (MMH) of Equatorial Guinea, in collaboration with the Atlantic Methanol Production Company (AMPCO), awarded American company Nexant the feasibility study for the construction of a new formaldehyde production plant in Punta Europa. The project is part of the Year of Investment and was previously agreed during a meeting last January between H.E. President Teodoro Obiang Nguema Mbasogo, H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, Mar

Coronavirus – South Africa: COVID-19 impact on the economy

Download logoThe Department of Trade, Industry and Competition (the dtic) has noted with concern a series of recent comments and news articles that give the impression that the Minister of Trade, Industry and Competition, Mr Ebrahim Patel, has underplayed the extent of the costs that Covid-19 and the lockdown will impose on the economy. This is exactly the opposite of the truth. The impression seems to be based on an interview that Minister Patel conducted with the Sunday Times shortly after he

Rosgeo, Russia’s leading geological company, signed first contracts to start exploration and increase the potential of mineral and hydrocarbon resources in Equatorial Guinea

Download logoJSC Zarubezhgeologia and JSC Yuzhmorgeologia, internationally operating subsidiaries of the Russia’s state-owned joint stock company Rosgeo and the Ministry of Mines and Hydrocarbons (MMH) of Equatorial Guinea have signed two services contracts for the initial phase of seismic acquisition in transit zone and state geological mapping in the Rio Muni area, Equatorial Guinea. These contracts follow the signing of a Memorandum of understanding between both entities during the Russ

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

Tiger Brands CEO on results & how the company is responding to COVID-19 shocks

Food producer Tiger Brands reported a 35 per cent fall in half-year headline earnings and has deferred its interim dividend due to uncertainty by the Covid-19 outbreak. The group expects Covid-19 to unfold significant challenges to the business in the near future. Tiger Brands CEO, Noel Doyle joins CNBC Africa for more.

Netcare CEO on the impact of COVID-19 lock-down & medical sector readiness for virus peak

Hospital group Netcare saw a plunge in its hospital admissions in March and April with last month’s figures falling by 49.5 per cent. However, the group has noted that the easing of lock-down restrictions in May has seen a slight uptick in hospital patients. The group has scrapped its interim dividend and has committed R150 million to prepare its ICU and high care facilities to deal with Covid-19 cases. Dr Richard Friedman, CEO, Netcare joins CNBC Africa for more.

Moody’s changes Namibia’s rating from stable to negative

Nigeria’s GDP data and MPC announcement is expected later this week and Moody’s has changed the outlook on Namibia’s sovereign rating to negative from stable as it sites economic and financial pressure on Namibia amid the Covid-19 crisis. Ridle Markus, Africa Strategist at Absa Corporate and Investment Banking joins CNBC Africa for more.

How COVID-19 is impacting trade & cross border truck drivers in East Africa

According to the United Nations Conference on Trade and Development, global trade is predicted to fall by a record 27 per cent in the second quarter of 2020. In this episode of Doing Business in Rwanda, we take a look at the impact COVID-19 has had on trade and the establishment of cross border cargo transit logistics platform to curb the spread of the virus and facilitate smooth trade between neighbouring countries....

Trending Now

Africa’s unified & coordinated response to COVID-19: A public-private sector partnership

On this CNBC Africa special broadcast on Africa Day we hear from three influential and strident voices of the continent about how they feel Africa can come up with a unified and coordinated response to the pandemic – on both the private and public sector....

Op-Ed – Uzoma Dozie: How Nigerians can unlock their potential in the digital age

Nigerians are a global force bursting with potential and an enviable track record of success. But in a more complex and fast-paced world than ever before, many of us struggle to find the time or have the ability to fulfil their potential.

International travel for South Africans is now allowed, this is how it will work

South Africans may now travel internationally under strict regulations detailed by the Department of Home Affairs.

Ouch! How Tiger Brands got its fingers burnt in Nigeria for the second time in a decade

Food giant Tiger Brands has passed on paying a dividend as it faces job losses and cost-cutting in its operations after a bruising first half trading on the cusp of COVID-19.
- Advertisement -