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ArcelorMittal South Africa expects headline losses to deepen by as much as 51% for the first half of 2026 as the Industrial Development Corporation (IDC) and the government work to stabilise one of the country’s largest steelmakers.The steelmaker said on Wednesday that it expects HEPS to come in at a loss of between R1.32 and R1.37 a share for the six months to end-June, compared with a loss of 91c a share in the year-earlier period, with losses widening by between 45% and 51%.The company’s latest guidance comes as the IDC assesses the long-term viability of Amsa’s long steel business after providing funding to keep the operations running. KPMG has completed its due diligence on the business and submitted its report to the IDC as the state-owned financier considers the next steps.Amsa has previously said it is not in a position to repay the IDC funding in the “foreseeable future” and has said the future of its long steel operations will depend on the outcome of discussions with the state-owned financier.The steelmaker has cited years of weak domestic steel demand, rising electricity and logistics costs, and competition from low-priced imports as key factors weighing on the competitiveness of local steel production. The company has called for stronger tariff protection and other policy measures to help restore the competitiveness of the domestic steel industry.The government has identified the steel industry as a strategic sector because of its role in supporting manufacturing and industrial development. The government is seeking to preserve domestic steelmaking capacity because locally produced steel is used across key industries, including automotive manufacturing, mining, construction and engineering. As part of that effort, trade protection measures have been introduced and extended, but investors will be looking to Thursday’s interim results for indications of whether they are beginning to improve trading conditions and whether further support may be needed.Investors are expected to focus on Thursday’s full results for updates on the company’s liquidity, the progress of the IDC’s assessment, the impact of tariff protection measures, electricity and other input costs, and management’s outlook for the remainder of the year. They will also be looking for management’s assessment of domestic steel demand and whether the company believes trading conditions are likely to improve in the second half.Business Day
