ArcelorMittal South Africa has issued a stark update on the future of its Long Steel Business, warning that unless urgent structural and financial interventions are implemented by the end of September 2025, the company may be forced to proceed with an orderly wind-down of the operation.
The group confirmed that the six-month deferral period granted in March, supported by a R1.683 billion facility from the Industrial Development Corporation (IDC), has been fully utilised. This funding enabled the Longs Business to continue operations through the third quarter of 2025. However, the company emphasised that it is not in a position to assume any additional financial risk for the division beyond this period.
Although the deferral was intended to address structural limitations and investigate sustainable solutions, ArcelorMittal South Africa indicated that minimal advancements have been achieved in overcoming the main challenges, such as preferential pricing for scrap, low demand, inadequate tariff safeguards, inconsistent rail services, and high electricity costs relative to competitors.
ALSO READ:
ArcelorMittal South Africa defers long steel business shutdown
The company mentioned that high levels of steel imports continue to flood the local market and Transnet’s rail service has deteriorated to unprecedented levels. The company also warned that unless a viable solution is implemented in time, they might be forced to initiate wind-down preparations ahead of the 30 September deadline.
The Longs Business will continue trading through Q3 to honour existing customer commitments, with a further update expected when the group releases its interim financial results on 31 July.
Trading Statement: Loss narrows, but challenges remain
In a trading statement for the six months ended 30 June 2025, ArcelorMittal South Africa advised shareholders that its interim loss per share is expected to improve year-on-year—falling between 15% and 25% from a loss of R1.09 to between R0.82 and R0.93. Headline loss per share is forecast to range between R0.89 and R0.99, compared to R1.00 in the same period last year. The figures are unaudited, with full results due for release on the JSE’s Stock Exchange News Service (SENS) at the end of July.
ALSO READ:
ArcelorMittal to shut down Longs (steel) business in SA, cutting 3 500 jobs
Business update: Operations improve amid weak demand
Despite ongoing headwinds, the group reported improved safety performance, with a reduced lost-time injury frequency rate of 0.44 compared to 1.13 in the first half of 2024.
Operationally, the Flat Steel Business saw double-digit production gains following the successful restoration of Blast Furnace C. However, volumes in the Longs Business remained constrained due to poor rail service, cable theft, and locomotive breakdowns, costing the company R317 million in additional logistics expenses.
Sales volumes fell approximately 10% year-on-year due to weaker demand and high import penetration, while realised prices in rand terms were over 5% lower than in 2024, also impacted by a stronger rand-dollar exchange rate.
