ArcelorMittal SA warns of lower sales, output | Fin24
 
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ArcelorMittal SA warns of lower sales, output

Nov 07 2019 12:35
Fin24

ArcelorMittal South Africa's share price slumped by almost 5% after the steel producer warned of lower local sales and output.

It said liquid steel production dipped by 236 000 tonnes, or 18%, as a result  of lower production at the company’s Vanderbijlpark Works. 

“This is largely as a result of a planned production curtailment to adjust volumes to lower demand. Accordingly, capacity utilisation for Q3 2019 decreased to 65% compared to 85% in the comparable period”.

The company which is the largest steel producer on the African continent said local sales were down almost 17% as a result of weak local demand. Business was also impacted by the volatility in the rand/dollar exchange rate, while exports jumped 50.7% to 324,000 tons.

The company supplies over 61% of the steel used in South Africa and exports to the rest to sub-Saharan Africa and elsewhere. 

arcelor mittal sa  |  steel
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