Among the reasons for the upturn are a 4.5 billion-rand rights issue earlier this year and tariff protection plans initiated by the South African government amid improved relations which had earlier soured because of the high prices charged by ArcelorMittal for local supply at international prices.
Mittal had acquired the former state-owned steelmaker Iscor a decade ago as he embarked on his global steel acquisition plans after first coming to the rescue of the ailing company to turn it around.
The demise of ArcelorMittal's biggest South African rival, Evraz Steel and Vanadium, as well as the tariff protection, has led to a turnaround that will now save jobs at both its own plants and those at Evraz.
Evraz is currently under business rescue, with insiders saying that discussions are under way for ArcelorMittal to acquire the heavy steel milling operations of Evraz within the next year.
Tariff reviews by the government after reported talks at high level between Lakshmi Mittal and government leaders had led to the tariff protection in terms of which the country now imports only 8 per cent of the African continent's steel imports from China which was exporting steel at far lower prices than ArcelorMittal SA was providing locally.
ArcelorMittal SA chief financial officer Dean Subramanian said that there were ongoing discussions to ensure suitable pricing for sustainability of the local steel industry.