Manufacture and Wholesale of Basic Iron and Steel 2015
Price
R 1 900.00(ZAR) estimated $ 120.93 (USD)*
Report Coverage
The report on the Iron and Steel sector discusses the latest developments in the industry and the range of government interventions aimed at stimulating local manufacture in the upstream and downstream sectors. The report also profiles 31 industry players, including manufacturer Evraz Highveld Steel and Vanadium Ltd, which received a buy-out offer of R350m from Hong Kong-based International Resources Limited (IRL), thus managing to avoid liquidation. Also profiled are a number of steel merchants and downstream manufacturers such as Pro Roof Steel Merchants (VRN) (Pty) Ltd. and Africa Pipe Industries (Pty) Ltd.
The South African Iron and Steel Sector
The South African steel industry is a key strategic industry, which contributes 1.5% to the country’s GDP and employs 190,000 people directly plus another 100,000 people who are employed by suppliers to the sector. Steel is a key enabler of every part of the economy, and is critically linked to the automotive, mining and construction sectors, which combined contributed 17% or R570bn to GDP in 2014 and employed 8 million people. However, the future of the entire South African steel industry is under severe threat with steel producers unable to compete with cheap Chinese imports flooding into the South African market and selling at 25% below local production costs.
Recent Developments
There have been a number of important developments in the local steel sector during 2015. The announcement in April by Evraz Highveld Steel and Vanadium that it had filed for business rescue, followed by ArcelorMittal South Africa threatening to close its plants in Vereeniging and Scaw Metals, South Africa’s third-largest steel producer, closing three plants emphasised the catastrophic impact of cheap imports and reduced consumption on the steel industry. Losses of between 10,000 and 16,000 jobs are inevitable despite the approval by the Department of Trade and Industry (DTi) in August of the imposition of a 10% duty on certain imported steel products. The establishment of an emergency task team consisting of representatives from business, labour and government has resulted in a list of measures that need to be implemented if the closure of most steel producers in the country is to be prevented.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 2 |
| 2.2. | Geographic Position | 3 |
| 3. | SIZE OF THE INDUSTRY | 5 |
| 4. | STATE OF THE INDUSTRY | 9 |
| 4.1. | Local | 9 |
| 4.1.1. | Corporate Actions | 13 |
| 4.1.2. | Regulations and Government Programmes | 13 |
| 4.1.3. | Enterprise Development and Social Economic Development | 15 |
| 4.2. | Continental | 17 |
| 4.3. | International | 18 |
| 5. | INFLUENCING FACTORS | 21 |
| 5.1. | Government Intervention | 21 |
| 5.2. | Economic Environment | 25 |
| 5.3. | Growth in End-user Markets | 25 |
| 5.4. | Rising Input Costs | 26 |
| 5.5. | Power Supply Issues | 27 |
| 5.6. | Technology | 27 |
| 5.7. | Labour | 28 |
| 5.8. | Information Technology | 31 |
| 5.9. | Environmental Concerns | 31 |
| 6. | COMPETITION | 32 |
| 6.1. | Barriers to Entry | 33 |
| 6.2. | Research and Development (R&D) and Innovation | 33 |
| 7. | SWOT ANALYSIS | 34 |
| 8. | OUTLOOK | 35 |
| 9. | INDUSTRY ASSOCIATIONS | 36 |
| 10. | REFERENCES | 36 |
| 10.1. | Publications | 36 |
| 10.2. | Websites | 37 |
| COMPANY PROFILES | 38 | |
| A Holman Trading Company (Pty) Ltd | 38 | |
| Aeroton Steel (Pty) Ltd | 40 | |
| Africa Pipe Industries (Pty) Ltd | 42 | |
| Allied Steelrode (Pty) Ltd | 44 | |
| Andrew Mentis (Pty) Ltd | 46 | |
| ArcelorMittal South Africa Ltd | 48 | |
| Argent Industrial Ltd | 53 | |
| Aveng Ltd | 58 | |
| Barnes Reinforcing Industries (Pty) Ltd | 63 | |
| Barnes Tubing Industries (Pty) Ltd | 65 | |
| Bosal Afrika (Pty) Ltd | 67 | |
| BSi Steel Ltd | 69 | |
| Cape Gate (Pty) Ltd | 73 | |
| Capital Africa Steel (Pty) Ltd | 75 | |
| Clotan Steel (Pty) Ltd | 78 | |
| Consolidated Steel Industries (Pty) Ltd | 80 | |
| Columbus Stainless (Pty) Ltd | 83 | |
| Consolidated Wire Industries (Pty) Ltd | 86 | |
| Everite Pipes (Pty) Ltd | 89 | |
| EVRAZ Highveld Steel and Vanadium Ltd | 91 | |
| Fischer South Africa Facilities (Pty) Ltd | 95 | |
| Garsin Engineering CC | 97 | |
| Group Five Ltd | 99 | |
| Hall Longmore (Pty) Ltd | 104 | |
| Industrial Metal Profiling CC | 106 | |
| Innovative Mining Products (Pty) Ltd | 108 | |
| Insimbi Refractory & Alloy Supplies Ltd | 110 | |
| Iron Mineral Beneficiation Services (Pty) Ltd | 113 | |
| Jaguar Metals (Pty) Ltd | 115 | |
| Mazor Group Ltd | 117 | |
| Meshrite (Pty) Ltd | 119 | |
| Neven Matthews (Pty) Ltd | 121 | |
| Macsteel Service Centres SA (Pty) Ltd | 123 | |
| NJR Steel Processing (Pty) Ltd | 130 | |
| Pro Roof Steel Merchants (VRN) (Pty) Ltd | 132 | |
| Robor (Pty) Ltd | 134 | |
| Saldanha Steel (Pty) Ltd | 137 | |
| Sandvik (Pty) Ltd | 139 | |
| Scaw South Africa (Pty) Ltd | 141 | |
| Stewarts and Lloyds Holdings (Pty) Ltd | 145 |
