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.