ArcelorMittal South Africa to shut long steel plants, 3,500 jobs at risk
The decision, which will affect over 3,500 jobs, comes after prolonged efforts to address challenges in the South African steel industry.
ArcelorMittal South Africa said its engagement with the government led to some progress, but not enough to sustain the long steel business. (Photo: Getty Image)
ARCELORMITTAL South Africa Limited (AMSA), a subsidiary of steel magnate Lakshmi Mittal’s global operations, has announced plans to cease operations at its long steel plants.
The decision, which will affect over 3,500 jobs, comes after prolonged efforts to address challenges in the South African steel industry.
AMSA stated that the closure follows persistent weak economic conditions, ongoing energy and logistics constraints, and heightened competition from low-cost imports, primarily from China.
In November 2023, AMSA had placed its long steel business under care and maintenance while discussions were held to explore alternative solutions.
CEO Kobus Verster said, “As a company, we are disappointed that all our efforts over the last year have not translated into a sustainable solution. The issues tabled for resolution sought to level the playing field against international and local competitors.”
He noted that structural problems in the steel industry, both within the company and South Africa at large, were key barriers to sustainability. “We had hoped that matters would not have come to this conclusion, at a time when our country can ill-afford job losses and the further erosion of industrial capacity,” Verster added.
In response to concerns from stakeholders, including the government and labour unions, about job losses and socioeconomic impacts, AMSA worked on solutions throughout 2024. While the company did not request subsidies, it sought policy support to address structural constraints in the sector.
AMSA said its engagement with the government since December 2023 led to some progress, but not enough to sustain the long steel business.
“Initial signs of recovery in international steel prices, following announced Chinese stimulus measures, were short-lived. By year-end, the company faced no alternative but to proceed with the winding down of the Longs Business,” AMSA said.
Steel production is expected to cease by late January 2025, with the winding down of remaining operations completed within the first quarter of the year. Newcastle’s coke-making operations will continue at a reduced capacity.
The South African Iron and Steel Institute (SAISI) reported that the country’s crude steel production from January to November 2024 was 4.42 million tonnes, 2.3 per cent lower than the previous year. Production levels are now 30 per cent below 2018, with South Africa trailing Egypt and Algeria in steel output.
AMSA, which originated from the state-owned steelmaker Iscor, expressed confidence in restructuring its remaining operations to remain competitive and sustainable.
INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.
Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.
After viral photos from a fashion show drew criticism from Indian artisans who make the sandals - named after a historic city in Maharashtra state - Prada was forced to acknowledge that its new open-toe footwear was inspired by ancient Indian designs.
"Prada 0: Kolhapur 1," said an Instagram post by e-commerce website Shopkop, whose founder Rahul Parasu Kamble's open letter to Prada pointing out the footwear is "soaked in tradition" was reshared 36,000 times on social media.
"I saw the controversy as a way to promote Kolhapuri," said Kamble, 33, who has seen sales of sandals he sources from local artisans touch 50,000 rupees ($584) in three days, five times the average.
Social media has been abuzz in recent days with criticism and sarcastic memes, with politicians, artisans and a trade body demanding due credit to Indian heritage.
Prada has said it will arrange follow-up meetings with artisans. In a statement on Tuesday (1), it added the Italian group intends to make the sandals in India in collaboration with local manufacturers, if it commercialises them.
India's luxury market is small but growing, with the rich splurging on Lamborghini cars and pricey watches. Prada does not have a single retail store in India and its products are usually reserved for the super rich - its men's leather sandals start retailing at $844 (£667), while Kolhapuris can be priced as low as $12 (£8.92).
But linking of the Prada name to the Kolhapuri sandals, which are made by around 7,000 artisans, is providing a business opportunity for some.
Mumbai-based Ira Soles is running new Facebook and Instagram advertisements which proclaim its $32 (£24) "Tan Handcrafted Kolhapuris just walked the ramp at Prada ... Limited stock. Global spotlight. Own a piece of what the world is applauding.".
E-commerce website Niira is offering up to 50 per cent discounts on its Kolhapuri slippers it says are "rooted in tradition". Its sales of $18 (£13.5) sandals, that looked like the one Prada showcased in Milan, have tripled, founder Nishant Raut said.
"Why can't an Indian Kolhapuri brand become as big as a Birkenstock," he said.
Handmade in small factories, Kolhapuri sandals, or chappals as they are called in Hindi, are often paired with Indian attire. Similar designs are sold in big outlets of Bata India and Metro Brands, and also on Amazon and Walmart's Flipkart.
In 2021, India's government said the sandals could achieve $1 billion (£728m) a year in exports. Though latest estimates are not available, artisans say the business has struggled as consumers increasingly opt for more fashionable, upmarket footwear.
Still, the Prada controversy is breathing new life into a craft that Lalit Gandhi, president of Maharashtra's main industry lobby group, says is "a dying art". Gandhi said he is in talks with Prada to develop a co-branded, limited-edition sandal.
Kolhapur craftsmen Ashok Doiphode, 50, is pinning hopes on a Prada boost. He hand-stitches sandals for nine hours daily but can sell a pair for just Rs 400 (£3.5)
"If big companies like Prada come, craftsman like me can get a good price."
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The Canary Wharf business district including global financial institutions in London.
THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.
Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.
Growth for March was revised up to 0.4 per cent from a previous reading of 0.2 per cent, according to the ONS.
The increase followed growth of just 0.1 per cent in the fourth quarter of 2024. However, GDP fell by 0.3 per cent in April from March, a decline affected by one-off factors.
Outlook for Q2 and pressure on budget targets
The Bank of England expects the economy to grow by about 0.25 per cent in the second quarter of 2025.
Finance minister Rachel Reeves is hoping for stronger growth to reduce pressure to raise taxes again later this year in order to meet her budget goals.
Thomas Pugh, chief economist at RSM UK, said weak consumer spending and hiring data in recent weeks likely reflected a short-term reaction to an employer tax increase and the US tariffs, many of which have now been suspended.
"Now that uncertainty has started to recede, consumer confidence is rebounding, and business surveys point to the worst of the labour market pain being behind us," Pugh said.
A separate survey published on Monday showed employer confidence in Britain had reached a nine-year high, with businesses more optimistic about the economy.
Interest rate cuts expected; energy prices a risk
The Bank of England is expected to cut interest rates two more times in 2025, which could support household spending.
However, a renewed rise in energy prices caused by further conflict in the Middle East could add pressure to the already slow-growing economy.
According to Monday’s ONS data, household expenditure grew by 0.4 per cent in the first quarter, revised up from an initial estimate of 0.2 per cent. The increase was led by spending on housing, household goods and services, and transport.
The UK property market saw increased activity ahead of the 31 March expiry of a tax break for some homebuyers.
Savings fall, manufacturing rises
Households drew from their reserves to support spending, with the saving ratio falling for the first time in two years. However, at 10.9 per cent, it remained high.
Manufacturing output rose by 1.1 per cent in the first quarter, ahead of the US tariff increase in April, compared with the final quarter of 2024.
The ONS also reported that the UK’s current account deficit widened to 23.46 billion pounds in the January-to-March period, up from just over 21 billion pounds in the previous quarter.
RUSSIAN oil major PJSC Rosneft Oil Company is in early discussions with Reliance Industries to sell its 49.13 per cent stake in Nayara Energy, an Indian energy company that operates a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps, sources familiar with the matter said.
The deal, if finalised, would see Reliance overtake state-owned Indian Oil Corporation (IOC) to become India’s largest oil refiner. It would also provide Reliance with a significant expansion in fuel retailing, where it currently holds a relatively small presence.
The talks, however, are still at a preliminary stage and may not lead to a final agreement, primarily due to differences in valuation, according to three sources with direct knowledge of the matter.
Top Rosneft executives have visited India at least three times in the past year, including stops in Ahmedabad and Mumbai, to hold talks with potential buyers.
Rosneft is seeking to exit Nayara, which it acquired in 2017 (then Essar Oil) for approximately $12.9 billion (around £10.2bn).
Western sanctions have made it difficult for the Russian firm to repatriate earnings from its Indian operations. A suitable buyer, ideally with significant international revenues or foreign ownership, would be able to process cross-border payments more easily.
Reliance, a major exporter of petroleum products, fits that profile. However, a spokesperson for the company said: “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.”
UCP Investment Group, a major Russian financial firm, which holds a 24.5 per cent stake in Nayara, is also looking to sell. The remaining shareholders include Trafigura Group (24.5 per cent) and a group of retail investors. Sources said Trafigura may also consider exiting the company if a deal is struck, possibly on the same terms.
Rosneft had initially valued Nayara at $20bn (approximately £15.8bn), a figure considered too high by most interested parties.
Adani Group declined the opportunity, citing both the high price and its existing agreement with TotalEnergies to limit future investments in fossil fuels.
Saudi Aramco has also expressed interest in Nayara, which would support its long-term goal of securing a downstream presence in India, the world’s fastest-growing oil market. However, Aramco too finds the valuation steep. Talks between Rosneft and Aramco reportedly have not advanced beyond initial engagement.
Nayara may make the most strategic sense for Reliance. The company already operates two massive refineries at Jamnagar, Gujarat, with a combined capacity of 68.2 million tonnes per year, located near Nayara’s facility in Vadinar. Acquiring Nayara would help Reliance surpass IOC’s total refining capacity of 80.8 million tonnes per year and significantly increase its retail footprint.
Nayara’s 6,750 fuel stations contrast sharply with Reliance’s 1,972 outlets in a market with over 97,000 petrol pumps. “Oil refining alone is not profitable — unless you have marketing, you can’t make money,” said one industry official.
While Rosneft has reportedly reduced its asking price to $17bn (around £13.4bn), the valuation remains a sticking point for interested parties. No formal offers have been announced, and Rosneft has yet to issue an official statement on the matter.
(PTI)
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Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.
Here are the key issues at play:
HURDLES TO A TRADE DEAL
India's dependence on agriculture – a major source of rural jobs – has made it politically difficult for New Delhi to accept US demands for steep tariff cuts on corn, soybean, wheat and ethanol, amid risks from subsidised US farm products.
Domestic auto, pharmaceutical, and small-scale firms are lobbying for only a gradual opening of the protected sectors, fearing competition from US firms.
The US is pushing for greater access to agricultural goods and ethanol, citing a significant trade imbalance, along with expanded market access for dairy, alcoholic beverages, automobiles, pharmaceuticals, and medical devices.
"LACK OF RECIPROCITY"
Despite India offering to cut tariffs on a range of farm products, give preferential treatment to US firms, and increase energy and defence purchases, Indian officials say they are still awaiting substantive proposals from Washington amid Trump's erratic trade policies.
Indian exporters remain concerned about US tariff hikes, including a 10 per cent average base tariff, 50 per cent on steel and aluminium, and 25 per cent on auto imports, as well as a proposed 26 per cent reciprocal duty that remains on hold.
STRATEGIC ALIGNMENT
Indian policymakers see the US as a preferred partner over China but remain cautious about compromising policy autonomy in global affairs.
The US is India’s largest trading partner and a major source of investment, technology, energy, and defence equipment.
TENSIONS OVER PAKISTAN
India remains wary of deeper strategic ties after Trump’s perceived tilt toward Pakistan during a recent conflict between the neighbours, which raised doubts about US reliability.
GROWING INDIAN EXPORTS TO US
New Delhi is confident exports will continue to grow, especially in pharmaceuticals, garments, engineering goods and electronics, helped by tariff advantage over Vietnam and China.
India's goods exports to the US rose to over $87 billion in 2024, including pearls, gems and jewellery worth $8.5 billion, pharmaceuticals at $8 billion, and petrochemicals around $4 billion.
Services exports – led by IT, professional and financial services – were valued at $33 billion in 2024.
The US is also India's third-largest investor, with over $68 billion in cumulative FDI between 2002 and 2024.
US EXPORTS TO INDIA
US manufacturing exports to India, valued at nearly $42 billion in 2024, face high tariffs, ranging from 7 per cent on wood products and machinery to as much as 15 to 20 per cent on footwear and transport equipment, and nearly 68 per cent on food.
According to a recent White House fact sheet, the US average applied Most Favoured Nation (MFN) tariff on farm goods was 5 per cent compared to India’s 39 per cent.
(With inputs from Reuters)
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Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)
VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.
The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.
According to Vedanta's exchange filing on Thursday, the lenders involved in the deal include Standard Chartered Bank and its Mauritius unit, First Abu Dhabi Bank, Mashreqbank, and Sumitomo Mitsui Banking Corp.
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt.
The company lowered its net debt by £876m, bringing it down to £8.1 billion in fiscal 2025.