ArcelorMittal South Africa Ltd. (ArcelorMittal SA) will shut down its long-steel products business after months of consultations with the government failed to prevent job losses.
In October 2024, the company warned shareholders of anticipated Q3 losses due to weak performance in the long steel division, citing deteriorating steel markets, high energy and logistics costs, and increasing low-cost imports, particularly from China.
In November 2023, ArcelorMittal SA announced the long steel business would enter care and maintenance due to prolonged economic challenges, but delayed closure after consultations with the government. Despite cost-cutting efforts, the financial outlook for Q4 2024 remained bleak, leading to the decision to wind down the long steel business by year-end.
The company’s crude steel production for 2024 is expected to be slightly below 2023 levels, affected by blast furnace issues and planned repairs. While flat steel production improved, the long steel division operated at around 50pct capacity due to weak market conditions. Sales volumes are expected to decline, with a weaker regional sales mix due to increased exports from the long steel division.
The closure will affect all long steel plants, including Newcastle Works, Vereeniging Works, and ArcelorMittal Rail & Structures. Newcastle’s coke-making operations will continue at a reduced scale, reflecting lower demand.
