ACL - Unaudited operational information for the quarter ended 30 September 2017 ArcelorMittal South Africa Limited (Incorporated in the Republic of South Africa) (Registration number 1989/002164/06) Share code: ACL ISIN: ZAE 000134961 (ArcelorMittal South Africa, the company or the group) Unaudited operational information for the quarter ended 30 September 2017 Salient features - LTIFR weakened from 0.09 to 0.13 at the end of Q3 2017 - Difficult trading conditions in the domestic market - Volatility in the rand/US dollar exchange rate continues to impact the business significantly - Refurbishment of coke batteries at Newcastle Works completed in Q3 2017 - Liquid steel production up 11% - Local sales up 6% - Export sales up 49% - Implementation of safeguards on hot rolled coil and plate since 11 August 2017 - 10% duties on heavy sections Operational information Nine Quarter ended months Year 30 Sept 30 Jun % 30 Sept % 30 Sept 31 Dec 2017 2017 change 2016 change 2017 2016 Liquid steel production 000 tonnes 1 240 1 175 5.5 1 115 11.2 3 614 4 771 Flat steel products 000 tonnes 914 836 9.3 712 28.4 2 563 3 221 Long steel products 000 tonnes 326 339 (3.8) 403 (19.1) 1 051 1 550 Capacity utilisation % 81 78 3.8 73 11.0 80 78 Flat steel products % 87 80 8.7 68 27.9 82 77 Long steel products % 68 72 (5.6) 84 (19.0) 76 81 Steel sales Local 000 tonnes 863 774 11.5 814 6.0 2 492 3 275 Flat steel products 000 tonnes 613 547 12.1 518 18.3 1 780 2 097 Long steel products 000 tonnes 250 227 10.1 296 (15.5) 712 1 178 Export 000 tonnes 202 271 (25.5) 136 48.5 720 812 Flat steel products 000 tonnes 127 171 (25.7) 105 21.0 466 639 Long steel products 000 tonnes 75 100 (25.0) 31 141.9 254 173 Total 000 tonnes 1 065 1 045 1.9 950 12.1 3 212 4 087 Flat steel products 000 tonnes 740 718 3.1 623 18.8 2 246 2 736 Long steel products 000 tonnes 325 327 (0.6) 327 (0.6) 966 1 351 Coke and Chemicals Commercial coke produced 000 tonnes 47 52 (9.6) 44 6.8 147 251 Commercial coke sales 000 tonnes 49 46 6.5 46 6.5 141 324 Tar sales 000 tonnes 20 19 5.3 19 5.3 59 75 Commentary This analysis is for Q3 2017 compared to Q3 2016. Safety Safety remains our number one priority. Lost time injury frequency rate (LTIFR) weakened from 0.09 to 0.13. Production Liquid steel production was 125 000 tonnes (11.2%) higher, mainly due to higher production at Saldanha Works as a result of the mini-reline in Q3 2016. This has been partly offset by lower production at Newcastle Works following a cutback in production as a result of high input costs and poor market conditions. The capacity utilisation for Q3 2017 increased to 81% compared to 73% in the comparable period. Sales Local Local sales were 49 000 tonnes (6.0%) higher, mainly due to higher local demand for flat products as a result of the implementation of safeguards on hot rolled coil since the beginning of August. Long product sales decreased by 15.5% following strong competition from scrap producers in relation to manufacturers using raw materials in their production process. Imports declined by 142kt as a result of safeguards, weaker local market and high stock levels. Export Export sales increased by 66 000 tonnes (48.5%). Flat products was higher by 22 000 tonnes and long steel products by 44 000 tonnes. The strong international demand was however muted by the strengthening of the average rand/US dollar exchange rate for most of the quarter. Commercial coke Commercial coke sales were 3 000 tonnes (6.5%) higher. The refurbishment of its coke batteries at Newcastle Works was completed in Q3 2017 which had the effect of limiting the amount of coke available for blast furnace production and for sale to the commercial coke industry. During the repair of the coke batteries, the company imported metallurgical coke in order to supplement shortfalls. Outlook for Q4 Local sales will continue to be under pressure due to tough trading conditions, mainly as a result of lower steel demand due to poor economic conditions but it is expected to be slightly higher in Q4 2017 due to lower imports. Export sales will also be higher due to better international prices. ArcelorMittal South Africa remains firmly of the opinion that a solution is required to protect the downstream industry from cheap finished and semi-finished products that continue to be imported into the country. We continue to engage government and the downstream industry on the implementation of safeguards and initiatives to stimulate local demand. A sustainable solution is needed for the high increases anticipated in electricity and rail costs in South Africa, which will significantly impact the viability of some of our plants going forward. The general impact of these increases on the national economy is also a concern. The volatility in the rand/US dollar exchange rate will continue to have an impact on our financial results. By order of the board 23 October 2017 Sponsor: Absa Bank Limited (acting through its Corporate and Investment Banking division) Release date: 10 November 2017 For further information please contact: Hennie Vermeulen, Group Manager: Corporate Communications Telephone +27 16 889 2352 This report is available on ArcelorMittal South Africa’s website at: http://www.arcelormittalsa.com Date: 10/11/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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