Africa's largest steel producer, ArcelorMittal South Africa, has announced its financial results for 2016, reporting a net loss of ZAR 4.7 billion ($358.77 million), compared to a net loss of ZAR 8.6 million in the previous year.
In 2016, the company's sales revenue increased by 5.12 percent year on year to ZAR 32.73 billion ($2.5 billion), following an eight percent increase in average net realized prices. The company's total steel sales volume decreased by 44,000 mt with export sales declining by 26 percent due to the oversupply of steel in the global market, both year on year.
In the given year, ArcelorMittal South Africa's overall liquid steel production was 4.8 million mt, one percent lower compared to the previous year, while capacity utilization for flat steel improved to 77 percent compared to 75 percent in 2015, and long steel capacity utilization increased from 73 percent in the previous year to 81 percent.
According to the company, in the current year domestic steel demand is expected to remain subdued due to low economic growth and lack of infrastructure investments. Export markets are likely to be more resilient, however, authoritative projections being that Africa will experience demand growth in the order of four percent. The achievement of tangible progress on safeguards is of vital importance for the reduction of imports that continue to plague the sustainability of the primary steel sector in South Africa and the impact on tens of thousands of jobs that depend on it.