ArcelorMittal South Africa reacts on local and international markets
Global crude steel production (source: World Steel Association) decreased by 1% or 11 million tonnes in the first half of 2023 to 946 million tonnes. This reflected disappointing demand with insufficient enduser consumption levels, thin margins and low profitability levels, along with notable pressure to reduce costs, as upstream steel making raw material prices remained at relatively elevated levels. Global crude steel production increased by 8% in H1 2023, compared to the immediately preceding six months.
Africa’s output increased by 4% to 8 million tonnes due to higher production in South Africa, Tunisia and Libya. South Africa’s crude steel production increased by 14% to 2.4 million tonnes.
Turning to South Africa and the regional economy, the GDP growth rate forecast for South Africa is 0.4% for 2023, with those for near and sub-Saharan African markets forecasted to be between 3.4% and 3.6%.
In South Africa, apparent steel consumption (ASC) for the first half of 2023 increased by 2% to 2.1 million tonnes, while ASC increased by 4% compared to 2.0 million in the immediately preceding six months.
Steel imports of primarily HRC, galvanised sheet and plates decreased to 596 000 tonnes (June: AMSA estimate) after a surge in the immediately preceding six months of 720 000 tonnes. This volume constituted some 29% of South Africa’s ASC (H2 2022: 36%).
The company’s total sales volumes increased by 3%, or 34 000 tonnes, to 1.2 million tonnes compared to the comparable volumes in 2022. This was composed of a 6% fall in domestic sales to 1.0 million tonnes while exports increased by 68% to 230 000 tonnes. Africa overland sales rose by 47% to 119 000 tonnes.
Total sales volumes increased by 19% compared to the immediately preceding six months, with domestic sales increasing by 13%, and Africa overland sales increasing by 133%. Africa overland sales as percentage of total exports, improved to 52% (H2 2022: 34%).
