Local steelmaker ArcelorMittal South Africa’s latest figures show a company that is under extreme stress. For the six months ended June 2019, it reported earnings before interest, tax, depreciation and amortisation decreased from R1.4 billion in the comparable period last year to R167 million. The company had to endure a higher iron-ore price, a key feed in producing steel, while global steel prices fell 13%. On top of that, global demand for steel was down and the company’s myriad costs shot up.
Kobus Verster, the CEO at Arcelormittal discusses the dynamics that are at play in the steel market and the operating challenges the company has been facing with Nompu Siziba.