Africa’s biggest steel maker, the JSE-listed Arcelor Mittal (Mittal), on Friday said revenues for the six months to June surged 13 percent to R17.9 billion ($1.6 billion) on the back of an increase in net prices.
Mittal said domestic prices of steel soared 12 percent during the period under review with prices for flat and long steel rising 7 percent and 8 percent respectively.
Steel shipments gained three percent with export shipments surging 59 percent while local (South Africa) shipments slipped 10 percent because of subdued domestic demand.
The steel maker said the sub-Saharan African region continues to offer good market prospects for steel as large infrastructure investments are being implemented with new projects in roads, rail, housing development and energy projects.
More investments in the mining sector had also added to the demand for steel in the region, Mittal said.
“Prospects for further growth remain high as new investments in the oil and gas sectors are also stimulating steel demand,” Mittal said.
Mittal said there had been no concrete progress regarding its tiff with South Africa’s competition authorities.
In March this year, Mittal said South Africa’s competition authority, the Competition Commission, was investigating Arcelor Mittal (South Africa) for “excessive pricing” of tinplate and flat steel.
“Joined to this investigation is an investigation into alleged excessive pricing arising from the iron ore surcharge introduced by ArcelorMittal South Africa for the period May 2010 to July 2010,” Dr Hans Rosenstock, Mittal’s acting CEO, said at the time.
He added that the firm was co-operating completely with the competition authorities and continued to provide documentation whenever asked to do so. (VENTURES AFRICA)