Salient features

  • Best annual injury frequency
    safety metrics ever reported

  • 13% lower liquid steel production of 4.4 million tonnes due to 8% lower sales volumes of 4.1 million tonnes

  • Average international steel prices fell by 15%

  • 9% reduction in revenue to R41 353 million

  • 12% increase in the raw material basket (RMB), and the cash cost per tonne of liquid steel

Overview and sustainability

The 2019 financial year represented the most challenging year since the global financial crisis for the world steel industry, and an exceptionally difficult year for the South African economy and ArcelorMittal South Africa.

The downturn in world steel has been faster and deeper than could have ever been anticipated. The correlation between steel prices and raw material costs has broken down. The size of the dislocation between steel prices and raw material cost is very unusual, and although recently, raw material prices have moderated a little, the dislocation continues. Internationally, steel producers are struggling to respond fast enough to the dramatic change in the business environment compared to 2018. Domestically, numerous downstream steel businesses have disclosed being in financial distress.