Africa's largest steel producer, ArcelorMittal South Africa, has announced that in the first quarter this year its crude steel production increased by 5.9 percent year on year to 1.27 million mt. In the first quarter, the company was running at 85 percent capacity overall compared to 80 percent for the same quarter of the previous year.
Regarding sales volumes in the first quarter of the current year, ArcelorMittal South Africa's domestic sales amounted to 838,000 mt, down two percent year on year, mainly due to lower local demand for flat products as a result of low economic activity in South Africa. In the given quarter, the company’s export sales increased by 33.2 percent to 329,000 mt, compared to the same quarter of 2017.
According to ArcelorMittal South Africa, in the second quarter this year local sales will continue to be under pressure due to tough trading conditions, but the company expects that flat product volumes will increase following the potential upside from renewable energy and other projects. Export sales will also be higher due to better international prices.