($1 = 17.7136 rand) (Reporting by Nelson Banya; Editing by Himani Sarkar and Savio D'Souza)
(Adds details)
Feb 9 (Reuters) - ArcelorMittal South Africa's full-year
profit declined by 62% due to weaker steel prices and demand at
a time when costs were driven up by significant price increases
of key inputs such as coal, the company said on Thursday.
The unit of Luxembourg-based ArcelorMittal , the
world's No.2 steelmaker, said its headline earnings per share
(HEPS) - the main profit measure in South Africa - fell to 2.34
rand ($0.13) per share in the year to December 2022, from 6.15
rand the previous year.
"Globally, steel prices declined at a faster rate than raw
materials as particularly evident in the second half of the
year," ArcelorMittal South Africa said.
On the other hand, it added, international prices of coking
coal, a key ingredient in steelmaking, had gone up by 62%
year-on-year in dollar terms.
Steel consumption declined by 12% to 4 million tonnes last
year in South Africa, reflecting low market activity in key
steel-consuming sectors, high market inventory levels the
required destocking, project delays due to rising interest rates
and overall weaker business confidence, the company said.
Therefore, the company added, it was adjusting production by
idling plants, consolidating production at the most productive
facilities and reducing fixed costs.
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