ArcelorMittal South Africa said it will shut down its long steel division after failing to secure a viable solution before the September 30 deadline. The business has faced mounting pressures from the scrap export tax introduced in 2021, preferential pricing favoring mini-mills, rising costs, and competition from cheaper Chinese imports.
The company noted additional challenges, including high rail tariffs, stagnant energy costs, and limited protective measures for domestic steel. Despite extensive efforts with the government, the IDC, and other stakeholders, no agreement was reached, and funding to keep the unit running beyond September was unavailable.
ArcelorMittal confirmed that its flat steel business will continue operations.
The company further added that the blast furnace at its Newcastle plant has been placed under temporary care and maintenance as part of the long steel wind-down.
