Johannesburg - A trading update from ArcelorMittal on Wednesday showed improvements in production, but continuing weakness in demand in the first quarter.
The leading steel producer sees liquid steel production up by 108 000 tons, or 8.7 percent, in the quarter to the end of March as production improved to 84 percent of capacity as a result of enhanced stability.
Local sales for the quarter are expected to improve by about 101 000 tons (13.1 percent), but a forecast reduction of 156 000 tons (43.1 percent) in export sales would drag the total sales for the quarter down 4.9 percent on the same quarter last year.
While the company said it expects plant performance to remain stable at the current levels, trading conditions are set to remain difficult with challenges around steel pricing, particularly in the export markets.
ANA