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SA's largest steelmaker ArcelorMittal SA's share price rose as much as 12% to R4.80 on Monday morning, taking it to a three month high.
A stabilising rand, rising steel price, and an easing dollar have bolstered the outlook for the producer, which reported its first interim profit in six years in August.
Amsa has focused on large debt-containment through asset sales, and this had shored up good cash on the balance sheet, said Afrifocus Securities portfolio manager Cheslyn Francis.
Global demand for steel, currently strong, was improving, although this was still in the context of weak local demand, said Francis.
"However iron-ore prices are inching toward a 52-week high, giving some leverage to the throttling of supply due to the tariff war between US and China. Similarly coking-coal and coke futures were comparably higher on some demand issues."
ArcelorMittal had reported interim headline earnings of R54m in the six months to end-June, a marked improvement on the headline loss of R1.6bn in the first half of 2017. The company reported 10% growth in steel sales by volume, despite a nine-year low, as well as a significant reduction in debt.
Analysts had largely welcomed the return to profitability, but have noted significant headwinds for the producer, which is facing ongoing issues of the US-China trade war, as well as weak demand for steel products in SA.
Earlier in November the company reported the finalisation of the sale of its MacSteel asset, for approximately R3bn, with the company noting at the time the funds would be used to strengthen its balance sheet and fund working capital requirement.
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