Johannesburg - Arcelormittal South Africa (Amsa), Africa's biggest steel
producer, reported on Thursday that its operating and headline losses for the
half year to June had increased by R714 million and R1.16 billion respectively.
The company blamed higher coking coal and iron ore costs
coupled with the strengthening of the rand against the dollar as well as the
weakening of the South African economy for the weak financial results.
Amsa chief executive, Wim De Klerk, said the results were on
the back of the weaker domestic economy.
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"Declining business confidence as a result of the
recession, a 0.7 percent decrease in gross domestic product during the first
quarter of 2017, a downgrade to junk status and the highest unemployment rate since
2004 are all contributing factors to a weakened economy in South Africa,” said
De Klerk.
“In turn, this has resulted in minimal local investment and
infrastructural spend, particularly in the construction and manufacturing
sectors, and it has seriously constrained the local steel market.”