According to local media reports, Arcelormittal South Africa (AMSA) began stopping its long steel unit after 78 years of activity, starting on September 1, 2025. He noted that international steel prices have been at a record level for two years, while in South Africa sales fell by 11 percent, and prices by seven percent, which led to a decrease in revenue by 17 percent. Consequently, since 2023, a loss of about 1.7 billion ZA was registered in the division. At the same time, competitors with the production of steel, based on an electric furnace, won from the local pricing system, which contributes to the consumption of scrap, unlike AMSA, which still uses a more polluting approach based on iron ore. On the other hand, the collapse of the Transnet railway system forced the company to rely on a more expensive road transport. Growing imports and higher electricity tariffs added further pressure.
The company conducted discussions with the government and industrial development corporation (IDC) to find a solution, as previously reported Steelorbis. Earlier this year, IDC provided ZAR in ZAR extreme funding to maintain NewCastle operations until September. Nevertheless, no long -term salvation plan was agreed, leaving AMSU without a choice, except to close the separation.
