South Africa: AMSA aims to add 60000-ton flat steel production, resolves to aid steel shortage

The JSE-listed Steel producer ArcelorMittal South Africa (AMSA) company is aiming to add over 60,000-ton flat steel in South Africa, according to a report by Engineering News.

As reported AMSA restarted its second blast furnace earlier-than planned at the Vanderbijlpark Works. The restart would position AMSA to "quickly resolve" the prevailing shortage of steel that has been severely affecting downstream manufacturers and fabricators for several months.

AMSA restarted the Blast Furnace C earlier on 20 December 2020 to support the supply backlog prior to the scheduled date on January 2021, it reported.

Adding to the reports, Kobus Verster, the CEO of AMSA stated that the company is expecting to meet steel requirements in the continent.

“With all three blast furnaces fully operational at our Newcastle and Vanderbijlpark plants, we expect that we will be more than able to meet the steel requirements in South Africa and neighbouring countries in the coming months,” Verster said.

He further added, "with the restart of the second blast furnace in Vanderbijlpark, the increased steel capacity from the beginning of January 2021 will quickly resolve any remaining backlog issues.”

However, addressing the steel shortage AMSA described it as a global issue.

“There have been increased lead times for supply from steel mills around the world, with most mills now quoting production dates in the second quarter of 2021, and for some niche products, even the end of the quarter", he added.

The report noted the temporary supply backlogs since several domestic fabricators have been reporting serious shortfalls. As well as the Trade, Industry, and Competition Department is also conducting a survey to access the problem, it stated.

While acknowledging the supply backlogs, AMSA reportedly mentioned, “as has been the case in the rest of the world, ArcelorMittal South Africa has been experiencing temporary backlogs in supply due to almost three months of disruption to production as a result of the different levels of lockdown. These temporary shortages were also due to destocking (running at lower stock levels) in the entire steel value chain, even before the nationwide lockdown"