Africa’s largest steel producer ArcelorMittal South Africa has announced that it has postponed its plans to shut down its longs business consisting of its Newcastle and Vereeniging works as well as its AMRAS rail and structural steel subsidiary for about a month.
As SteelOrbis reported previously, in January this year, ArcelorMittal South Africa had decided to close its long steel business due to weak economic growth, higher energy and logistics costs, an increase in low-priced imports especially from China, overcapacity both in the domestic and global markets, and scarce policy interventions by the South African government.
The reasons behind the decision were the company’s ongoing discussions with the South African government on the future of its longs business as well as its stronger-than-expected order book. Initially, the closure, including the cessation of steel production, had been scheduled to commence by the end of January.
ArcelorMittal South Africa also emphasized that in 2024 both the company and the South African steel industry faced the greatest challenges since the global financial crisis of 2008-09, with international steel and raw material price spreads remaining under pressure.