Steel giant ArcelorMittal SA expects higher sales in steel products for the last quarter, both locally and with exports.
In the company’s recent third quarter financial report CEO Wim de Klerk said it is starting to see a positive impact on local demand since the safeguards on hot rolled coil came into effect in August this year.
Liquid steel production was also 125 000 tonnes (11,2%) higher. This is an improvement De Klerk ascribes mainly to higher production at Saldanha as a result of the mini reline this plant had in 2016. However, he added this had been partly offset by lower production at Newcastle, following a cutback of high input costs in poor market conditions.
Export sales increased by 66 000 tonnes (48,5%).
“The strong international demand was unfortunately muted by the strengthening of the average rand/USD dollar exchange rate for most of the quarter, highlighting the ongoing impact the volatile exchange rate has on our financial results,” said De Klerk.
On the outlook for 2017’s fourth quarter, De Klerk said local sales will continue to be under pressure from tough trading conditions, even though demand is expected to be slightly higher, “as we continue to see the impact of decreasing imports. Export sales are also expected to be higher owing to better international prices.”
