ArcelorMittal shuts furnace over rail troubles and grapples with pricing impacts of Russia-Ukraine conflict

ArcelorMittal’s operations in Vanderbijlpark.

Transnet’s poor performance has forced ArcelorMittal South Africa (AMSA) to shut off a blast furnace for three weeks while the steelmaker has also warned customers that the Russia-Ukraine conflict is pushing key input prices skyward.

The curveballs come just a month after the group, South Africa’s primary steelmaker, posted its highest earnings in nearly 15 years, rebounding from the brink of collapse as steel markets improved and structural reforms began to bear fruit.

In a letter sent to customers earlier this month, which Fin24 has seen, AMSA said it had been experiencing a “progressive deterioration in the availability of trains” which has affected the levels of raw materials stock and has forced the steelmaker to halt production at one of its blast furnaces in Vanderbijlpark.

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