ArcelorMittal South Africa Limited. JSE: ACL

AcelorMittal shares

Background of AcelorMittal

  • ArcelorMittal South Africa’s history extends back to 1928, when the South African Steel and Industrial Coporation was established by influential businessman Hendrik van der Bijl. Today, ArcelorMittal South Africa is a branch of the world’s largest steel producer – ArcelorMittal –and listed on the Johannesburg Stock Exhchange (JSE) in 1989.

  • The company is Africa’s largest steel producer, boasting an annual average product capacity of 6.5 million tonnes of liquid steel and 5.5 million tonnes of saleable steel products. It currently supplies 60% of the steel used in South Africa. In 2015, it employed 9315 people and contributed to creating around 100 000 jobs in the steel sector. Market cap stands at over R 11 billion.

  • Employing some 4500 staff, the Vanderbijlpark Works is one of the world’s biggest inland steel mills and the largest flat steel products supplier in sub-Saharan Africa.

  • There is also an export-focused plant in Saldanha Bay, a Tubular Works plant in Vereeniging and a Long Steel Products plant in Newcastle. The group uses blast furnaces to transform raw materials to liquid steel, and produces a huge variety of steel products used in industries such as construction, mining, agriculture, engineering, automotive and energy. ArcelorMittal’s Coke & Chemicals division produces commercial coke for the ferro-alloy industry.

  • AcelorMittal South Africa share prices dropped by more than 50% from May 2015 to May 2016, due to the economic meltdown and instability in the steel sector, which has been triggered by cheaper Chinese importers and an oversupply of steel products.

AcelorMittal Shares Growth Driver

  • AcelorMittal South Africa’s main focus it to expand its portfolio through growing its share of the local market, developing value-added products and building strong industry partnerships. The company has also had a history of effectively exploiting high profit export markets and maintaining international standards of operational excellence, high-quality products and customer satisfaction.

  • AcelorMittal’s performance has been severely impacted by a challenging operational context, with the financial data being largely negative. Artificially cheap Chinese steel has flooded the South African market, and international steel prices have collapsed. The company has failed to deliver profits and dividends for providers of capital, and has been forced to change its operations. AcelorMittal has restructured and
    strengthened its sourcing department to reduce costs, and improved reliability and productivity of plants, in a bid to stabilise falling AcelorMittal share prices.

AcelorMittal Group Investor Tip

  • The forecast is that difficult conditions in the steel industry are unlikely to improve in the near future. Demand may decline, but AcelorMittal hopes that customs duties and anti-dumping measures will allow the group to sell its products in a sustainable context. However, without full implementation of these measures, the company will be unable to avoid huge restructuring and job losses. The steel industry is a volatile environment for investors to buy into at present, making the purchase of AcelorMittal shares an unsustainable investment.

AcelorMittal Major Shareholders

ArcelorMittal Holding Group, Investec Asset Management, Industrial Development Corporation, Coronation Fund Managers, Government Employees Pension Fund, Vicva Investments and Trading Nine (Pty) Ltd.

  • Sector

    Materials

  • Industry

    Iron & Steel
  • Sub industry

    Steel Producers

How to buy AcelorMittal Group Shares

  • AcelorMittal : How to buy AcelorMittal Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy AcelorMittal Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in AcelorMittal Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase AcelorMittal Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in AcelorMittal.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
  • Buy Shares with Confidence

    Buying JSE shares has never been this convenient and easy. #myfirstshare

    View more JSE shares for sale – here.

Summary
Review Date
Reviewed Item
AcelorMittal
Author Rating
51star1star1star1star1star