The South African Steel Industry is hit hard by he global slowdown in the market DEMAND for steel.
Reports today from multiple sources say for example that South Africa’s largest steel producer ArcelorMittal South Africa (AMSA) is giving notice that it is weighing the partial or full closure of its Vereeniging Works, in southern Gauteng. The Vereeniging mill is perhaps South Africa’s oldest steel plant — going back to 1911 as the Union Steel Corporation of South Africa.
Some market sources suggest that ArcelorMittal may soon make a trading statement indicating that the company might report a large loss per share in the half year to June 30. One source, Mining Weekly, has its reporters suggesting that it could be as much as “1,400% worse than the 2c/share loss incurred during the corresponding period last year.” Other South African steel companies like Highveld Steel and Vanadium are also reporting depressed commercial results.
This marks a continuing pattern of global declining prospects for ore, met coal, and scrap plus lower future business revenues for the railroads and ports that handle the steel related inputs and outputs.
Are the transporters changing their strategic plans or hoping their customers’ business patterns will suddenly change?
Go here for more reported details: http://m.miningweekly.com/article/poor-citizen-amsa-promises-to-mend-ways-as-it-seeks-support-to-save-vereeniging-and-company-2015-07-23