Finding immediate steel alternatives a concern as AMSA prepares to wind down longs unit

ArcelorMittal South Africa (AMSA) has indicated that it will enter discussions with buyers of its noncommodity long-steel products in an effort to limit the disruption that is set to arise because of the closure of its longs operations in Newcastle, Vereeniging and Emalahleni. Although demand for value-added products was insufficient to sustain an integrated mill such as Newcastle, where commodity products, such as rebar, make up a large portion of the one-million tons produced yearly, CEO Kobus Verster acknowledged that certain customers would face difficulties finding immediate substitute material.