ArcelorMittal South Africa posts decline in crude steel output for Q3

Africa's largest steel producer, ArcelorMittal South Africa, has announced that in the third quarter its crude steel production decreased by 25 percent year on year to 1.02 million mt due to the planned relining of its blast furnace at Newcastle. The resulting shortfall of 400,000 mt in output due to the relining was partly offset by higher production volumes at Vanderbijlpark. The company was running at 62 percent capacity overall compared to 83 percent for the same quarter of the previous year.
 
During the first nine months of the current year, the company produced 3.4 million mt of crude steel, declining by 33.1 percent compared to the corresponding period of the previous year.
 
Regarding sales volumes in the third quarter, ArcelorMittal South Africa's domestic sales amounted to 750,000 mt, down 3.5 percent, while export sales decreased by 19.3 percent to 288,000 mt mainly due to fewer long product export sales following the reline refurbishment project in Newcastle, both year on year.
 
According to ArcelorMittal South Africa, as the blast furnace at Newcastle is expected to complete its ramp-up by the middle of the current month, total steel capacity utilization is expected to move back above 80 percent as all other units will maintain their current production levels. Sales should also increase despite the usual seasonal impact during the festive period.