https://newsletter.en.creamermedia.com

Hulamin responds to US import tariff, says markets for niche products strong

4th May 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

South Africa’s exclusion from a list of countries exempted from tariffs imposed by the US on steel and aluminium imports should not have an immediate impact on local producer Hulamin, but it has increased long-term risks, the JSE-listed company said on Friday. 

Hulamin, whose share price has suffered since the April 30 announcement that South African aluminum products will not be exempt from the Section 232 import duties, said that markets for niche products in the US should remain strong.

Outgoing chairperson Mafika Mkwanazi said in a letter to shareholders that efforts were under way to address regulatory issues with customers.

President Donald Trump on March 8 announced a 10% ad valorem tariff on imports of aluminium articles and a 25% ad valorem tariff on imports of steel articles, but later granted some countries exemption.

Mkwanazi said that South Africa’s competitive position, relative to countries and regions that have been granted exemption status, was being eroded by the import tariff.

He noted that Hulamin had a “flexible and nimble strategy” that allowed the company to adjust export destinations for its standard products in response to changing market conditions.

“Long-standing market positions and customer relationships in key markets around the world remain available, should conditions in the US worsen,” he averred.

Meanwhile, Hulamin said that it continued to focus on operational and manufacturing excellence in order to deliver further cost saving, improved efficiencies and growth in sales volumes.

In 2018 to date, manufacturing performance is steady, while sales volumes have lagged production, as was usual this time of year, the company noted.

“With change and progress accelerating, often driven by technology, Hulamin is particularly well placed. Being in aluminium, a truly remarkable metal we are at the forefront of material choices that support leading technological innovation.”

Shares in Hulamin traded at R4.57 each on Friday afternoon. The stock fell 11% since May 2, when Hulamin traded at R5.16 a share.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Projects

Showroom

The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 
Hanna Instruments (Pty) Ltd
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 22 November 2024
Magazine round up | 22 November 2024
22nd November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:3.165 3.291s - 189pq - 2rq
Subscribe Now