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Tel : 0086-0371-86172891
ArcelorMittal South Africa, the largest steel P690Q steel producer in Africa, recently announced its decision to shut down its long material business, including its Newcastle and Vereening factories, as well as its AMRAS rail and structural steel subsidiaries. Previously, the company had had multiple in-depth discussions with the government and relevant stakeholders, but was unable to reach a specific solution.
According to Mysteel, the closure of the long material business this time is mainly due to the slowdown of South African economic growth, the continuous rise of energy and logistics costs, the dominance of imported P690Q steel products in the market share, and the long-term overcapacity in the domestic and international steel markets. Meanwhile, the lack of effective policy intervention by the South African government is also one of the key factors.
According to the plan, the production of long materials will be completely suspended by the end of this month, and other production processes will gradually be closed in the first quarter. However, coke production at the Newcastle plant will continue to operate, but production will be reduced due to weak demand. This business adjustment is expected to affect approximately 3500 direct and indirect employment positions.
In addition, ArcelorMittal South Africa P690Q steel stated that due to the continued weakness in steel prices, declining capacity utilization, and closure of its long material business, the company expects its revenue to decline by more than 5% year-on-year in 2025, and the scale of losses will further expand.
