Africa's largest steel producer, ArcelorMittal South Africa, has announced that in the third quarter this year its crude steel production increased by 11.2 percent year on year to 1.24 million mt. The capacity utilization in the third quarter increased to 81 percent compared to 73 percent in the same quarter of the previous year.
Regarding sales volumes in the third quarter, ArcelorMittal South Africa's domestic sales amounted to 863,000 mt, up six percent from the corresponding period of 2016, mainly due to higher local demand for flat products as a result of the implementation of safeguards on hot rolled coil since the beginning of August this year. In the given quarter, the company’s export sales went up by 48.5 percent to 202,000 mt, with exports of flat products increasing by 22,000 mt and long steel products by 44,000 mt, all on year-on-year basis.
ArcelorMittal South Africa stated that 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 conditions but it is expected to be slightly higher in the fourth quarter of this year due to lower imports. Export sales will also be higher due to better international prices.