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Feb 9 (Reuters) - ArcelorMittal South Africa's full-year profit declined by 62% due to weaker steel prices and demand at a time when costs were driven up by significant price increases of key inputs such as coal, the company said on Thursday.
The unit of Luxembourg-based ArcelorMittal (MT.LU), the world's No.2 steelmaker, said its headline earnings per share (HEPS) - the main profit measure in South Africa - fell to 2.34 rand ($0.13) per share in the year to December 2022, from 6.15 rand the previous year.
"Globally, steel prices declined at a faster rate than raw materials as particularly evident in the second half of the year," ArcelorMittal South Africa said.
On the other hand, it added, international prices of coking coal, a key ingredient in steelmaking, had gone up by 62% year-on-year in dollar terms.
Steel consumption declined by 12% to 4 million tonnes last year in South Africa, reflecting low market activity in key steel-consuming sectors, high market inventory levels the required destocking, project delays due to rising interest rates and overall weaker business confidence, the company said.
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Therefore, the company added, it was adjusting production by idling plants, consolidating production at the most productive facilities and reducing fixed costs. ($1 = 17.7136 rand)
