ArcelorMittal SA faces challenges with R1bn half-year loss and closure of its Longs business

ARCELORMITTAL South Africa’s interim headline loss was virtually unchanged at R1.01 billion, non-core asset sales may be necessary and the closure of the Longs business in Vereniging next month is still on the cards.

- EDWARD WEST

All this bad news sent the beleaguered steel maker's share price tumbling 7.4% on the JSE late Thursday afternoon to R1.00. The price has fallen steadily from R1.36 a year ago.

“Subdued market demand, disruptive rail and electricity interruptions (with a R358m cost impact), and aggressive import penetration placed significant pressure on volumes and margins. Domestic sales volumes fell 10%, and exports by 13%, while long steel imports, predominantly from Zimbabwe, rose sharply,’ CEO Kobus Verster said.