To view the PDF file, sign up for a MySharenet subscription.

ARCELORMITTAL SOUTH AFRICA LIMITED - ACL - Unaudited operational information for the quarter ended 31 March 2018

Release Date: 11/05/2018 07:05
Code(s): ACL     PDF:  
Wrap Text
ACL - Unaudited operational information for the quarter ended 31 March 2018

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 31 March 2018

Salient features
- Lost time injury frequency rate (LTIFR) weakened from 0.44 to 0.66 at the end of Q1 2018      
- Domestic demand still weak                                                                 
- Continuous pressure of imports on the downstream products                                  
- Volatility in the rand/US dollar exchange rate continues to impact the business significantly      
- Liquid steel production up 6%                                                              
- Local sales down 2%                                                                        
- Export sales up 33%        

Operational information                                                                                   
                                                                    Quarter ended              
                                                   31 March            31 March                 %    
                                                       2018                2017            change    
Liquid steel production         000 tonnes            1 270               1 199               5.9    
Capacity utilisation                     %               85                  80               6.3    
Steel sales                                                                                          
- Local                         000 tonnes              838                 855              (2.0)   
- Export                        000 tonnes              329                 247              33.2    
- Total                         000 tonnes            1 167               1 102               5.9    
Coke and Chemicals                                                                                   
- Commercial coke produced      000 tonnes               45                  48              (6.3)   
- Commercial coke sales         000 tonnes               45                  46              (2.2)   
- Tar sales                     000 tonnes               22                  20              10.0    

Commentary
This analysis is for Q1 2018 compared to Q1 2017.

Safety
Safety remains our number one priority. LTIFR weakened from 0.44 to 0.66, while total injury frequency rate 
(TIFR) improved to 6.68 from 7.94. 

Production
Liquid steel production was 71 000 tonnes (5.9%) higher, mainly due to higher production at both Vanderbijlpark Works
and Saldanha Works, this has been partly offset by lower production at long products following some instability in the
iron making process. The capacity utilisation for Q1 2018 increased to 85% compared to 80% in the comparable period. 

Sales
Local
Local sales were 17 000 tonnes (2.0%) lower, mainly due to lower local demand for flat products as a result of low
economic activity in South Africa. Total imports of primary steel products decreased by 20% in the first quarter when
compared to Q1 2017 as a result of safeguards, weaker local market, high stock levels and increased production. Despite 
this, imports of galvanised products increased by 14%, while total imports of products containing steel for the period
increased by 8% when compared to Q1 2017, mainly driven by imports of low standard thin gauge products which are not 
produced locally. Standards in the low cost informal roofing market are necessary to mitigate this influx. Imports of 
tube and pipe also increased 34%, highlighting the need for trade protection measures for the downstream industry. 

Export
Export sales increased by 82 000 tonnes (33.2%). Flat steel products were higher by 58 000 tonnes and long steel
products by 24 000 tonnes. The strong international demand was however muted by the strengthening of the rand/US 
dollar exchange rate for most of the quarter.

Commercial coke
Commercial coke sales were 1 000 tonnes (2.2%) lower while tar sales were higher by 2 000 tonnes or 10.0%. 

Outlook for Q2
Local sales will continue to be under pressure due to tough trading conditions, but we expect that flat product
volumes will increase following the potential upside from renewable energy and other projects. Export sales will 
also be higher due to better international prices. 

By order of the board
2 May 2018

Sponsor: Absa Bank Limited                                                                           
(acting through its Corporate and Investment Banking division)                                       
Release date: 11 May 2018                                                                            
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: https://southafrica.arcelormittal.com
Date: 11/05/2018 07:05:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story