Strong rand threatens one of South Africa’s most important industries

ArcelorMittal South Africa, which is in talks to sell its struggling operations, said the rand’s strength is adding to the risk it faces in the country. 

The company’s average steel price fell by 3% in dollar terms and 5% in rand terms after the South African currency’s gains, it said in a statement on Thursday. The rand jumped about 14% against the dollar last year.

The unit of ArcelorMittal SA, which has to contend with rising imports of steel from China, reported a 16% drop in revenue in 2025 compared with the previous year. Net loss narrowed to R2.9 billion from R5.8 billion. 

The company said its talks with Industrial Development Corp. are continuing. The discussions started in November 2023 after AMSA announced it planned to shut two steel mills that produce grades that are crucial to the country’s automotive and mining industries.

AMSA has now closed the two steel mills and an iron-ore mine. It still operates a mill in Vanderbijlpark, south of Johannesburg, which produces steel sheets and other products and has idled facilities in the capital, Pretoria, and in the west coast town of Saldanha. The IDC sees the mills as crucial to the nation’s industrial sector.

AMSA, formerly known as Iscor, was acquired by Indian billionaire Lakshmi Mittal in 2003. Mittal in 2006 combined with Arcelor to form ArcelorMittal.