Africa's largest steel producer, ArcelorMittal South Africa, has announced that in the first quarter its crude steel production decreased by 2.3 percent year on year to 1.19 million mt. In the first quarter, the company was running at 80 percent capacity overall compared to 81 percent for the same quarter of the previous year.
Regarding sales volumes in the first quarter, ArcelorMittal South Africa's domestic sales amounted to 855,000 mt, down 3.4 percent year on year, mainly due to weaker local demand for long products as a result of high stock levels at the merchants and strong competition in the local market. In the given quarter, the company’s export sales increased by 8.8 percent to 247,000 mt, compared to the same quarter of 2016.
According to ArcelorMittal South Africa, in the second quarter this year local sales will continue to be under pressure due to tough trading conditions, mainly as a result of lower steel demand due to poor economic activity and ongoing imports. Export sales will also come under pressure due to weak international prices.