ArcelorMittal South Africa (ArcelorMittal SA) is in talks with the government and other stakeholders for funding to potentially delay the planned closure of its long steel operations. However, the company emphasized that without an agreement on funding and related matters, postponing the shutdown would not be feasible. While discussions continue, the wind-down process has not been halted.
Last month, the company announced plans to cease long steel production by Q2 2025 after failing to secure government support to keep the plant operational.
Key issues include the continuation of the scrap export tax and a preferential pricing system favoring mini-mills using electric arc furnaces. The scrap export tax, introduced in 2021 to curb exports, has not resolved industry challenges such as rising costs and competition from cheaper imports, especially from China. Additional pressures, including high rail tariffs, stagnant energy costs, and a lack of protective measures on steel products, have further strained operations.