Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

ArcelorMittal South Africa (AMSA) has declared force majeure amid mob violence in many parts of South Africa. The unrest has impacted logistics as vandals looted shops and businesses in several cities.  


Major highways are blocked, and violent rioters attacked transport vehicles as civil unrest broke out in South Africa after the former president Jacob Zuma was jailed on July 7. Several logistic companies and ports, including Durban and Richards Bay, have suspended operations. Local transport by both road and rail have been affected at the KwaZulu-Natal rail corridor to and from Newcastle.  


Amid these factors that have arisen due to the political turmoil, the company has declared force majeure and notified customers of its inability to fulfill shipment obligations.


The mill also closed some of its customer-centric operations to ensure the safety of employees and equipment.


Last year in August, the company had announced force majeure amid challenges faced during the first wave of the COVID-19 pandemic. With around 7mn mt of capacity, AMSA’s operating and business results could stay dull in the second half of 2021. 

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