ArcelorMittal South Africa's loss widens as rescue talks continue (updated)

ArcelorMittal SA

30/07/2026 09:48

Adds details, background in paragraphs 3-6
July 30 (Reuters) - ArcelorMittal South Africa ACLJ.J said on Thursday its half-year loss widened by 47%, with the business weighed down by weak steel prices and an influx of steel imports, mainly from China.
The South African unit of steelmaker ArcelorMittal MT.LU posted a headline loss of 1.489 billion rand ($89.29 million) in the six months ended June 30.
It had posted a headline loss of 1.014 billion rand a year earlier.
The company has been battling weak local demand, high electricity costs as well as competition from South African scrap metal recycling mini-mills and imports from China.
ArcelorMittal South Africa said talks with the state-owned Industrial Development Corporation (IDC) that could lead to a potential transaction continue, but declined to provide details on progress.
It has not disclosed whether the transaction involves a bailout package or an outright takeover.
The company mothballed its long steel plants last year in an effort to stem losses. The long steel operations supplied rail, rods and bars to the construction, mining and manufacturing sectors as well as to the automotive industry.
($1 = 16.6754 rand)

 (Reporting by Nelson Banya; editing by Louise Heavens and Jason Neely)
 ((Nelson.Banya@thomsonreuters.com;))