ArcelorMittal South Africa shares fell by 13% on Tuesday after the steelmaker said its annual profit would decline by as much as 65%.

In a trading update, ArcelorMittal South Africa said it expects headline earnings per share between R2.15 and R2.45 per share for the year ended December 31, down from R6.15 per share previously.

The company said the profit fall was mainly due to a decline in steel prices at a time when the prices of raw materials such as coal had risen rapidly.

Poor rail service, a two-week strike over wages and South Africa’s worst-ever power cuts also impacted the company’s steel production.

ArcelorMittal South Africa said it will release its annual financial results on February 9.

ArcelorMittal SA’s shares ended 2022 down 47%.