(Updates with closing share price in fifth paragraph.)
Sept. 2 (Bloomberg) -- ArcelorMittal South Africa Ltd., the continent’s biggest steelmaker, secured 240,000 metric tons of steel to supply to customers after an accident at its Newcastle mill cut output.
Some of the steel has been sourced locally, while most will come from ArcelorMittal mills around the world, the company said in an e-mailed statement today. “This will go a long way toward meeting the domestic demand for commercial grade long steel products such as rebar,” the company said.
A structural failure at its gas cleaning plant in Newcastle on Aug. 5 is expected to cut output by 400,000 metric tons, the company said earlier. Prices for long products, which accounted for nearly a third of the company’s sales last year, will rise by between 300 rand ($42.43) and 600 rand a ton in October, the steelmaker said today.
ArcelorMittal South Africa fell 4.1 percent to 59.70 rand by the 5 p.m. close of Johannesburg trading, the biggest daily decline since July 27. The FTSE/JSE Africa All Share Index closed 1.8 percent lower.
The steelmaker’s Newcastle plant is the biggest producer of long products in South Africa and serves mainly the mining, engineering, automotive, building, construction and agricultural industries, according to its website.
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