As anticipated in February 2021, both stronger sales volumes and the benefit of robust price-cost effects enabled ArcelorMittal South Africa to enjoy a strong start to 2021, recording a half yearly EBITDA of ZAR 3,218 million, its strongest in a decade. This performance was remarkably achieved against the backdrop of one of the most challenging operating environments in the company’s long history, characterised by:Two Covid-19 wavesInclement weather events at the beginning of the yearA highly inconsistent rail service necessitating frequent and costly operational stopsTragic and painful safety incidents, and the particularly noteworthy efforts of the entire business in restoring theDamaged plants and stabilising operationsA successful long maintenance stop at the Newcastle Works’ blast furnace to address damage caused as a result ofThe hard lockdownRamp-up challenges associated with restoring and accelerating production in the complex integrated steelmaking routes.The Company’s total sales volumes increase by 10% or 116 000 tonnes to 1.3 million tonnes compared to H1 2020, due to a 21% or 195 000 tonnes rise in domestic sales and a 39% or 79 000 tonne fall in mainly seaborne exports, as volumes were reallocated to Africa Overland markets.Excluding Saldanha Works, which through an orderly and commercial wind-down was placed under care and maintenance early in the second quarter of 2020, the Company’s average capacity utilisation increased from 39% in H1 2020 to 59% in H1 2021, and is currently at 85%. Liquid steel production (including that from Saldanha Works) increased by 36% or 403 000 tonnes, from 1.1 million tonnes to 1.5 million tonnes during H1 2021.
As anticipated in February 2021, both stronger sales volumes and the benefit of robust price-cost effects enabled ArcelorMittal South Africa to enjoy a strong start to 2021, recording a half yearly EBITDA of ZAR 3,218 million, its strongest in a decade. This performance was remarkably achieved against the backdrop of one of the most challenging operating environments in the company’s long history, characterised by:Two Covid-19 wavesInclement weather events at the beginning of the yearA highly inconsistent rail service necessitating frequent and costly operational stopsTragic and painful safety incidents, and the particularly noteworthy efforts of the entire business in restoring theDamaged plants and stabilising operationsA successful long maintenance stop at the Newcastle Works’ blast furnace to address damage caused as a result ofThe hard lockdownRamp-up challenges associated with restoring and accelerating production in the complex integrated steelmaking routes.The Company’s total sales volumes increase by 10% or 116 000 tonnes to 1.3 million tonnes compared to H1 2020, due to a 21% or 195 000 tonnes rise in domestic sales and a 39% or 79 000 tonne fall in mainly seaborne exports, as volumes were reallocated to Africa Overland markets.Excluding Saldanha Works, which through an orderly and commercial wind-down was placed under care and maintenance early in the second quarter of 2020, the Company’s average capacity utilisation increased from 39% in H1 2020 to 59% in H1 2021, and is currently at 85%. Liquid steel production (including that from Saldanha Works) increased by 36% or 403 000 tonnes, from 1.1 million tonnes to 1.5 million tonnes during H1 2021.
