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Manufacture and Wholesale of Basic Iron and Steel in South Africa 2022

Alex Conradie | South Africa | 11 May 2022

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R 13 500.00(ZAR) estimated $ 859.21 (USD)*

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Report Coverage

This report focuses on the manufacture and wholesale of basic iron and steel in South Africa and includes information on the state and size of the industry and influencing factors such as input costs, infrastructure and transport challenges, major players, regulations and government support. There are profiles of 41 companies including the major players such as ArcelorMittal South Africa, Columbus Stainless and BSi Steel, steel traders such as Macsteel Services Centres and suppliers such as Hudaco Trading.

The Manufacture and Wholesale of Basic Iron and Steel in South Africa

Increasing freight logistics costs and supply disruptions caused by the pandemic and Russia’s invasion of Ukraine have highlighted the value of local steel production. South Africa experienced a steel shortage in 2021, causing prices to increase and leading some downstream companies to ask for the removal of import duties to allow them to increase imports while local producers were unable to satisfy demand. Prices have since reduced and supply has increased while demand had dropped, resulting in a current oversupply of steel in South Africa.

Steel and Metal Masterplan

A masterplan, signed in 2021, has identified overcapacity in the production of long steel products and a focus on local production of flat steel products as many grades required by the automotive, mining and construction equipment, and mining industries are not manufactured locally. The plan also identifies steel needed for renewable energy supply as an opportunity for the iron and steel industry. The plan includes an agreement by manufacturers of primary steel products to contribute to a development fund to support various projects identified in the plan.

Challenges

Manufacturers of basic iron and steel face challenges such as the slow rollout of government’s infrastructure development programme, unstable electricity supply, steeply rising costs of raw materials, logistics, low domestic economic growth and unreliable rail transport. Some downstream steel product manufacturers believe their products are uncompetitive in export markets due to import duties and high prices charged by steel producers.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 1
2.2. Geographic Position 4
2.3. Size of the Industry 7
2.4. Key Success Factors and Pain Points 7
3. LOCAL 7
3.1. Key Trends 9
3.2. Notable Players 15
3.3. Trade 20
3.4. Corporate Actions 24
3.5. Regulations 25
3.6. Enterprise Development and Social Economic Development 27
4. AFRICA 28
5. INTERNATIONAL 38
6. INFLUENCING FACTORS 48
6.1. COVID -19 48
6.2. Economic Environment 48
6.3. Performance of End User Industries 50
6.4. Input Costs 51
6.5. Rail and Port Services 52
6.6. Inconsistent Supply of Electricity 53
6.7. Government Support 54
6.8. Technology, Research and Development (R&D) and Innovation 55
6.9. Labour 56
6.10. Environmental Issues 59
7. COMPETITIVE ENVIRONMENT 60
7.1. Competition 60
7.2. Ownership Structure of the Industry 61
7.3. Barriers to Entry 61
8. SWOT ANALYSIS 62
9. OUTLOOK 62
10. INDUSTRY ASSOCIATIONS 63
11. REFERENCES 65
11.1. Publications 65
11.2. Websites 65
Appendix 1 67
Summary of Notable Players 67
COMPANY PROFILES 72
A Holman Trading Company (Pty) Ltd 72
Aeroton Steel (Pty) Ltd 73
Africa Pipe Industries (Pty) Ltd 74
Allied Steelrode (Pty) Ltd 76
Andrew Mentis (Pty) Ltd 78
ArcelorMittal South Africa Ltd 80
Argent Industrial Ltd 85
Augusta Steel (Pty) Ltd 90
Aveng Ltd 92
Barnes Reinforcing Industries (Pty) Ltd 96
Barnes Tubing Industries (Pty) Ltd 98
Bosal Afrika (Pty) Ltd 99
BSi Steel (Pty) Ltd 101
Cape Gate (Pty) Ltd 104
Cape Town Iron and Steel Works (Pty) Ltd 106
Capital Africa Steel (Pty) Ltd 108
Clotan Steel (Pty) Ltd 110
Coega Steels (Pty) Ltd 112
Columbus Stainless (Pty) Ltd 114
Consolidated Wire Industries (Pty) Ltd 116
Fischer South Africa Facilities (Pty) Ltd 118
Garsin Steel Tube and Pipe (Pty) Ltd 120
Hall Longmore Holdings (Pty) Ltd 121
Hudaco Trading (Pty) Ltd 123
Jaguar Metals (Pty) Ltd 127
Macdonald Steel SA (Pty) Ltd 129
Macsteel Service Centres SA (Pty) Ltd 131
Meshco (Pty) Ltd 137
N J R Steel Holdings (Pty) Ltd 139
Neven Matthews (Pty) Ltd 142
Pro Roof Steel and Tube (Pty) Ltd 144
Richards Bay Titanium (Pty) Ltd 146
SA Metal Group (Pty) Ltd 148
Scaw South Africa (Pty) Ltd 151
Shaurya Steel (Pty) Ltd 154
Stewarts and Lloyds Holdings (Pty) Ltd 156
Tradecore Steel (Pty) Ltd 159
Tronox Mineral Sands (Pty) Ltd 160
Unica Iron and Steel (Pty) Ltd 162
United Heavy Industries (Pty) Ltd 164
Veer Steel Mills (Pty) Ltd 166