Africa's largest steel producer, ArcelorMittal South Africa, has announced that in the first quarter its crude steel production decreased by nine percent year on year to 1.23 million mt. In the first quarter, the company was running at 81 percent capacity overall compared to 84 percent for the same quarter of the previous year.
Regarding sales volumes in the first quarter, ArcelorMittal South Africa's domestic sales amounted to 885,000 mt, up 1.4 percent, while export sales increased by 10.2 percent to 227,000 mt, both year on year. The domestic market remains impacted by a continuation of cheap imports, primarily from China. However, the company was able to increase prices in the given quarter.
According to ArcelorMittal South Africa, in the second quarter this year market conditions are expected to remain difficult although sales and prices are expected to increase. ArcelorMittal South Africa also stated that the future sustainability of the company is highly dependent on resolving all outstanding matters including localization of steel for government infrastructure projects, tariff protection, as well as the implementation of safeguards and a fair pricing mechanism.