Rebuilding profitability and mitigating risk - ArcelorMittal South Africa
Rebuilding profitability and mitigating risk - ArcelorMittal South Africa
Rebuilding profitability and mitigating risk - ArcelorMittal South Africa
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Leading cost position for Saldanha while<br />
V<strong>and</strong>erbijlpark lost competitiveness<br />
• Since 2011, world cost curve has<br />
declined 19% ($130/t) for median<br />
cost steel producers<br />
• V<strong>and</strong>erbijlpark moved from 1st to 4th<br />
quartile due to low exposure to<br />
international raw material prices<br />
• Fixed price iron ore from Sishen<br />
• Increasing cost of captive mines<br />
• Domestic non-coking coal price<br />
not linked to international prices<br />
• Saldanha remained solid in 1st<br />
quartile from 2011-2013 due in part<br />
to significant efficiency<br />
improvements <strong>and</strong> higher exposure<br />
to international raw material prices<br />
• Imported pellets<br />
• Metallurgical coke<br />
Source: WSD April 2013<br />
7
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