Steel sales volume dropped 11 percent while prices slid 7 percent, causing a 16.5 revenue decline to R17.12 billion 947.72 million in H1 2025.
The IDCs R1.08 billion 59.58 million injection eased losses, yet Longs Business wind-down remains set for 30 September 2025.
ArcelorMittals equity plunged 47, with retained earnings turning negative amid rising debt, weak demand, and market oversupply.
ArcelorMittal South Africa ArcelorMittal SA, the Gauteng-based steelmaker linked to South African businesswoman Noluthando Gosa, reported a net loss of R932 million 52 million for the first half of 2025, as the group battled persistent industry headwinds, sliding steel prices, and weak domestic demand.
The loss , which amounted to R932 million 51.66 million, compared to R1.21 billion 67.29 million in the previous period, reflects the ongoing pressure on both international and local steel markets. Steel sales volumes dropped 11 percent to 1.05 million tonnes, while average realized prices fell 7 percent, exacerbating revenue decline by 16.5 percent to R17.12 billion 947.72 million.
Margins shrink as volumes drop and prices tumbleOperational gains failed to counterbalance deteriorating market conditions. Crude steel production rose 5 percent to 1.28 million tonnes, driven by improved asset utilization in the Flats Business. Yet, the company posted a headline loss of R1.01 billion 55.66 million. Raw material basket costs declined 12 percent year-on-year, while fixed costs fell 5 percent to R3.25 billion 179.07 million.
The companys Value Plan contributed R420 million 23.14 million, slightly down from R434 million 23.91 million a year earlier. A R1.08 billion 59.58 million funding injection from the Industrial Development Corporation IDC helped offset losses from the unprofitable Longs Business. However, without a long-term solution, the final wind-down of the division remains scheduled for 30 September 2025.
Crisis responseNet borrowings rose 21.8 percent to R4.62 billion 254.58 million, highlighting pressure on liquidity and working capital. Deferred income of R842 million 46.4 million from IDC support remains pending due diligence.