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    The Manufacture and Wholesale of Basic Iron And Steel in South Africa 2025

    Stephen Timm | South Africa | 25 April 2025

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

    Alex Conradie | South Africa | 11 May 2022

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2019

    Alex Conradie | South Africa | 26 June 2019

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2018

    Alex Conradie | South Africa | 17 April 2018

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2017

    Alex Conradie | South Africa | 24 March 2017

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015

    Elaine de Villiers | South Africa | 19 October 2015

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015

    Gareth Barnard | South Africa | 04 March 2015

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report on the manufacture and wholesale of basic iron and steel, including metal casting, includes information on production, manufacturing performance, capacity, demand and profitability. The report looks at plans by ArcelorMittal South Africa (AMSA) to shut down its long business and possible solutions, the status and performance of mini mills, and US steel tariffs. The report also includes information on notable players, corporate actions and new capex projects. There are profiles of 64 companies including steel companies such as AMSA, Scaw Metals, Columbus Stainless, Cape Gate, Macsteel and BSi Steel, and casting companies such as Autocast, Mitak, Wahl Industries, Weir Minerals and Atlantis Foundries.

    Introduction

    • South Africa’s crude steel production declined by 5% year on year in 2024.
    • The local steel industry is at a crossroads, with speciality steel producer AMSA announcing in December 2024 that it would shut its long steel business.
    • The company has blamed a lack of local demand, the government’s scrap metal policy which favours competing mini mills, and escalating logistics and electricity tariffs, which have made it unsustainable.
    • Industry challenges include significant overcapacity, dumping and decarbonisation.
    • Metal casting has faced similar challenges, and the number of companies involved in the sector has contracted significantly in recent years.

    Trends

    • A number of countries have added tariffs recently to protect their steel sectors.
    • Decarbonisation of steel.
    • Foundries are investing in technology solutions like 3D printing and robotics to become more competitive.
    • Imports of steel flats are growing.
    • Steel demand locally and globally remains low.
    • The growth of local mini mills, with a number also expanding production recently.

    Opportunities

    • 3D printing and robotics in metal casting to improve productivity.
    • Opening a mini mill, given the supportive policies for scrap metal and IDC funding available.
    • Some steel products have a local content threshold of 100% (the product must be made entirely of local steel) designated for procurement by state entities.
    • The African Continental Free Trade Area agreement.
    • The introduction of export support and support for downstream producers to export to the rest of Africa.

    Challenges

    • AMSA’s imminent closure threatens to reduce the country’s steel competitiveness.
    • Dumping of steel by other countries has created unfair competition with cheap imports.
    • Environmental regulation affects steel producers and foundries.
    • Imports are rising.
    • Input costs have grown, particularly for logistics and electricity.
    • Large producers like AMSA say the state’s scrap metal policies have created unfair benefits for mini mills.
    • Low steel demand, in part due to delayed infrastructure projects, means that there is significant overcapacity.
    • Poor logistics have created additional costs for producers.
    • Shortage of skilled employees.
    • Steel tariffs are lower than in other steel-producing countries.
    • The EU’s Carbon Border Adjustment Mechanism may reduce exports to Europe.

    Outlook

    • Steel producers say the outlook for the basic iron and steel production industry is grim as local demand is expected to remain low as the economy barely grows.
    • The industry is facing increased competition from cheap imports and challenges such as high electricity and logistics charges.
    • Some experts have said that AMSA’s R1.7bn loan from the IDC will just delay the inevitable closure of the business.
    • AMSA expects no real improvement in the steel market in 2025.
    • With an increase in demand unlikely, the solution to the crisis facing long steel producers is to increase exports or reduce capacity.

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    The Manufacture and Wholesale of Basic Iron And Steel in South Africa
    The Manufacture and Wholesale of Basic Iron And Steel in South Africa 2025

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    Industry Landscape

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    Industry Organogram

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2022-05-11

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2019-06-26

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2018-04-17

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2017-03-24

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015-10-19

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015-03-04

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 6
    2.3. Size of the Industry 6
    3. LOCAL 9
    3.1. State of the Industry 9
    3.2. Key Trends 23
    3.3. Key Issues 23
    3.4. Notable Players 24
    3.5. Trade 26
    3.6. Corporate Actions 30
    3.7. Regulations 31
    3.8. Enterprise Development and Social Development 34
    4. AFRICA 35
    5. INTERNATIONAL 39
    6. INFLUENCING FACTORS 43
    6.1. Economic Environment 43
    6.2. Environmental Issues 46
    6.3. Technology, R&D, Innovation 48
    6.4. Government Support 49
    6.5. Input Costs 51
    6.6. Performance of End User Industries 53
    7. COMPETITIVE ENVIRONMENT 54
    7.1. Competit 54
    7.2. Ownership Structure of the Industry 57
    7.3. Barriers to Entry 58
    8. INDUSTRY SUMMARY 58
    9. OUTLOOK 59
    10. INDUSTRY ASSOCIATIONS 60
    11. REFERENCES 60
    11.1. Publications 60
    11.2. Websites 61
    APPENDIX 1 - IRON & STEEL 63
    APPENDIX 2 - CASTING 67
    APPENDIX 3 - HS CODES COVERED 71
    COMPANY PROFILES – IRON AND STEEL 73
    A HOLMAN TRADING COMPANY (PTY) LTD 73
    AEROTON STEEL (PTY) LTD 75
    AFRICA PIPE INDUSTRIES (PTY) LTD 77
    ALLIED STEELRODE (PTY) LTD 79
    ANDREW MENTIS (PTY) LTD 82
    ARCELORMITTAL SOUTH AFRICA LTD 84
    ARGENT INDUSTRIAL LTD 89
    AUGUSTA STEEL (PTY) LTD 95
    BARNES REINFORCING INDUSTRIES (PTY) LTD 97
    BARNES TUBING INDUSTRIES (PTY) LTD 99
    BSI STEEL (PTY) LTD 101
    CAPE GATE (PTY) LTD 104
    CAPITAL AFRICA STEEL (PTY) LTD 106
    CLOTAN STEEL (PTY) LTD 109
    COEGA STEELS (PTY) LTD 111
    COLUMBUS STAINLESS (PTY) LTD 113
    CONSOLIDATED WIRE INDUSTRIES (PTY) LTD 115
    DUFERCO STEEL PROCESSING (PTY) LTD 117
    FISCHER SOUTH AFRICA FACILITIES (PTY) LTD 119
    GARSIN STEEL TUBE AND PIPE (PTY) LTD 121
    HALL LONGMORE HOLDINGS (PTY) LTD 123
    HUDACO TRADING (PTY) LTD 125
    JAGUAR METALS (PTY) LTD 130
    KAMAL CAPE TOWN IRON AND STEEL COMPANY (PTY) LTD 132
    MACDONALD STEEL SA (PTY) LTD 133
    MACSTEEL SERVICE CENTRES SA (PTY) LTD 135
    MESHCO (PTY) LTD 141
    N J R STEEL HOLDINGS (PTY) LTD 143
    NEVEN MATTHEWS (PTY) LTD 146
    PRO ROOF STEEL AND TUBE (PTY) LTD 148
    RAND YORK MINERALS (PTY) LTD 150
    RICHARDS BAY TITANIUM (PTY) LTD 151
    SA METAL GROUP (PTY) LTD 153
    SCAW SOUTH AFRICA (PTY) LTD 156
    SHAURYA STEEL (PTY) LTD 159
    STEWARTS AND LLOYDS HOLDINGS (PTY) LTD 161
    TRADECORE STEEL (PTY) LTD 164
    UNICA IRON AND STEEL (PTY) LTD 166
    UNITED HEAVY INDUSTRIES (PTY) LTD 168
    VEER STEEL MILLS (PTY) LTD 170
    COMPANY PROFILES - CASTING 171
    AKHANI 3D (PTY) LTD 171
    ARCELORMITTAL SOUTH AFRICA LTD 173
    ATLANTIS FOUNDRIES (PTY) LTD 178
    AUTOCAST SOUTH AFRICA (PTY) LTD 180
    BOSAL AFRIKA (PTY) LTD 183
    CAST PRODUCTS SOUTH AFRICA (PTY) LTD 185
    CERACAST (PTY) LTD 187
    COPALCOR (PTY) LTD 188
    ELMACAST (PTY) LTD 191
    GET METAL GROUP (PTY) LTD 192
    HUDACO TRADING (PTY) LTD 194
    KIMBERLEY ENGINEERING WORKS (PTY) LTD 199
    M I S ENGINEERING (PTY) LTD 201
    ME ELECMETAL PRIMA MANUFACTURING (PTY) LTD 203
    NATAL IRON AND BRASS FOUNDRY CC 204
    NON-FERROUS METAL WORKS (S A) (PTY) LTD 206
    PRESSURE DIE CASTINGS (PTY) LTD 208
    PREVAIL ENGINEERING (PTY) LTD 210
    RELY PRECISION CASTINGS (PTY) LTD 211
    RUSTENBURG ENGINEERING AND FOUNDRY (PTY) LTD 213
    SOUTH AFRICAN ROLL COMPANY (PTY) LTD 215
    THOMAS FOUNDRY (PTY) LTD 217
    THOS BEGBIE AND COMPANY (PTY) LTD 218
    TRANSNET SOC LTD 220
    VEREENIGING FOUNDRIES (PTY) LTD 226
    VIKING FOUNDRY (PTY) LTD 227
    WAHL INDUSTRIES CC 229
    WEIR MINERALS AFRICA (PTY) LTD 232

    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.

    Introduction

    According to the World Steel Association, South Africa was the world’s 32nd-largest crude steel producer in 2021, with output of 5.0 million tonnes (Mt), while the country exported basic iron and steel worth R22.5bn, according to statistics from the International Trade Centre’s Trade Map. Basic iron and steel products contributed R20.5bn or 0.4% to South Africa’s GDP in 2021, but factors such as poor economic growth, high input costs, inconsistent supply of electricity, and the poor performance and high costs of rail and port services are preventing the basic iron and steel manufacturing and wholesale industry from contributing more.

    Strengths

    • Government support.
    • Raw materials are mostly available in South Africa.
    • The industry is well-established and produces most grades needed by local end users.
    • Wide range of end users.

    Weaknesses

    • Coking coal has to be imported.
    • Energy-intensive production processes make producers vulnerable to high electricity costs and load-shedding.

    Opportunities

    • Increasing exports due to growth in African end user industries.
    • Local production of grades of flat steel currently imported by the automotive, mining and construction equipment and mining industries, but needed by these industries to achieve their local procurement commitments.
    • Steel needed for the transition to renewable energy supply.
    • Steel products with a minimum local content threshold of 100% designated for procurement by state entities.
    • The African Continental Free Trade Area agreement.

    Threats

    • Inconsistent supply of electricity.
    • Increasing costs of electricity, water, raw materials and logistics in particular, pose a threat to the industry’s profitability and sustainability.
    • Poor economic growth affects demand for steel.
    • Poor performance and high costs of Transnet’s rail and port services.
    • Slow rollout of public infrastructure projects.

    Outlook

    According to the Resources and Energy Quarterly report, global crude steel output is forecast to rise to 2,007Mt in 2022, and to 2,059Mt in 2023. Global crude steel consumption is expected to increase to 2,021Mt in 2022 and 2,072Mt in 2023 due to the recovery in the world economy. International steel prices are forecast to decline from an average of US$950/t in 2021 to an average of US$750/t in 2022 as demand normalises. The average price for the period 2023 to 2025 is expected to be US$535/t.ArcelorMittal South Africa expects demand in South Africa and its neighbours to grow in 2022, but at a lower rate than in 2021. Lucio Trentini, CEO of the Steel and Engineering Industries Federation of Southern Africa, said in February 2022 that he expected 2022 to be marginally better than 2021. “However, a lot hinges on the government’s planned infrastructure rollout and the trajectory the COVID-19 pandemic takes in the country in the months to come.”

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

    Full Report

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.80 (USD)*

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    Historical Reports

    The Manufacture and Wholesale of Basic Iron And Steel in South Africa 2025-04-25

    R 20 000.00(ZAR) estimated $1124.84 (USD)*

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2019-06-26

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2018-04-17

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2017-03-24

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015-10-19

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015-03-04

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

    Report Coverage

    This report on the Manufacture and Wholesale of Basic Iron and Steel includes comprehensive information and statistics on the size and state of the sector, production and exports and the factors that influence the sector in South Africa, on the continent and globally. There are profiles of 46 companies including the four largest primary steel producers, ArcelorMittal South Africa, Cape Gate, Columbus Stainless and Scaw Metals. Other profiles include Coega Steels, which is doubling plant capacity, and Allied Steelrode, which commissioned a second stretcher leveller in response to increasing demand for stretched and flattened steel.

    Introduction

    World Steel Association (WSA) figures show South Africa was the world’s 25th-largest crude steel producer in 2018, with output of 6.3 million tons (Mt), while 5.4Mt of iron was produced. In 2018, South Africa exported 2.7Mt of semi-finished and finished steel products worth US$2.4bn, while 662.4 kilotons (kt) of iron worth US$245.2m were exported, according to the International Trade Centre’s Trade Map. However, high production costs, the inconsistent supply of electricity, and poor domestic demand continue to have a significant impact on the performance of local manufacturers and wholesalers of basic iron and steel.

    Strengths

    • Iron ore and scrap steel are available in South Africa.
    • The steel manufacturing industry is well-established and able to fully supply domestic demand.
    • Wide range of end-users, with steel used in most sectors of the economy.

    Weaknesses

    • Competition in the steel manufacturing sector is low as ArcelorMittal South Africa dominates the carbon steel market, and Columbus Stainless the stainlesssteel market.
    • Energy-intensive production processes leave producers vulnerable to high electricity costs and inconsistent supply.

    Opportunities

    • Increased production and new players due to the availability of large amounts of steel scrap at reduced prices.

    Threats

    • Depressed domestic demand due to low economic growth, and a lack of infrastructure spending.
    • High input costs, especially water, electricity and labour.

    Outlook

    According to the Resources and Energy Quarterly report, global crude steel output is forecast to rise to 1,811Mt in 2019, before decreasing to 1,808Mt in 2020. The World Steel Association expects global demand for finished steel products to increase by 1.3% to reach 1,735Mt in 2019, before growing by 1.0% to 1,752Mt in 2020. Growth in demand is expected to slow down due to the deceleration of the Chinese and global economies, and uncertainty around trade policies. The association expects steel demand in Africa to increase by 3.0% in both 2019 and 2020 to reach 39.2Mt in 2020.ArcelorMittal South Africa intends to increase its steel production, while the company expects local steel demand to increase in 2019 as a result of urgently needed investment in South Africa’s water infrastructure.

    Read More..
    The Manufacture and Wholesale of Basic Iron and Steel in South Africa
    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.80 (USD)*

    Buy Now +

    Historical Reports

    The Manufacture and Wholesale of Basic Iron And Steel in South Africa 2025-04-25

    R 20 000.00(ZAR) estimated $1124.84 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2022-05-11

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2018-04-17

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2017-03-24

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015-10-19

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Manufacture and Wholesale of Basic Iron and Steel in South Africa 2015-03-04

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 1
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 5
    4.1. Local 5
    4.1.1. Trade 8
    4.1.2. Corporate Actions 10
    4.1.3. Regulations 11
    4.1.4. Enterprise Development and Social Economic Development 12
    4.2. Continental 13
    4.3. International 14
    5. INFLUENCING FACTORS 16
    5.1. Economic Environment 16
    5.2. Rising Input Costs 17
    5.3. Inconsistent Supply of and Increasing Cost of Electricity 17
    5.4. Environmental Concerns & Carbon Tax 17
    5.5. Government Support 18
    5.6. Technology, Research and Development (R&D) and Innovation 18
    5.7. Labour 19
    6. COMPETITION 20
    6.1. Barriers to Entry 21
    7. SWOT ANALYSIS 22
    8. OUTLOOK 22
    9. INDUSTRY ASSOCIATIONS 23
    10. REFERENCES 23
    10.1. Publications 23
    10.2. Websites 24
    APPENDIX 1 25
    Summary of Notable Players 25
    COMPANY PROFILES 29
    A HOLMAN TRADING COMPANY (PTY) LTD 29
    AEROTON STEEL (PTY) LTD 31
    AFRICA PIPE INDUSTRIES (PTY) LTD 33
    ALLIED STEELRODE (PTY) LTD 35
    ANDREW MENTIS (PTY) LTD 38
    ARCELORMITTAL SOUTH AFRICA LTD 40
    ARGENT INDUSTRIAL LTD 45
    AUGUSTA STEEL (PTY) LTD 50
    AVENG LTD 52
    BARNES REINFORCING INDUSTRIES (PTY) LTD 56
    BARNES TUBING INDUSTRIES (PTY) LTD 58
    BOSAL AFRIKA (PTY) LTD 60
    BSI STEEL (PTY) LTD 62
    CAP STAR STEEL (PTY) LTD 65
    CAPE GATE (PTY) LTD 67
    CAPITAL AFRICA STEEL (PTY) LTD 70
    CLOTAN STEEL (PTY) LTD 72
    COEGA STEELS (PTY) LTD 74
    COLUMBUS STAINLESS (PTY) LTD 76
    CONSOLIDATED STEEL INDUSTRIES (PTY) LTD 78
    CONSOLIDATED WIRE INDUSTRIES (PTY) LTD 81
    EVRAZ HIGHVELD STEEL AND VANADIUM LTD 83
    FISCHER SOUTH AFRICA FACILITIES (PTY) LTD 85
    GARSIN ENGINEERING CC 87
    HALL LONGMORE HOLDINGS (PTY) LTD 89
    HUDACO TRADING (PTY) LTD 91
    INDUSTRIAL METAL PROFILING CC 95
    INSIMBI INDUSTRIAL HOLDINGS LTD 97
    IRON MINERAL BENEFICIATION SERVICES (PTY) LTD 102
    JAGUAR METALS (PTY) LTD 104
    MACDONALD STEEL SA (PTY) LTD 106
    MACSTEEL SERVICE CENTRES SA (PTY) LTD 108
    MAZOR GROUP LTD 115
    MESHCO (PTY) LTD 118
    N J R STEEL HOLDINGS (PTY) LTD 120
    NEVEN MATTHEWS (PTY) LTD 123
    PRO ROOF STEEL AND TUBE (PTY) LTD 125
    RICHARDS BAY TITANIUM (PTY) LTD 127
    ROBOR (PTY) LTD 129
    SA METAL GROUP (PTY) LTD 131
    SANDVIK (PTY) LTD 134
    SCAW SOUTH AFRICA (PTY) LTD 136
    STEELEDALE (PTY) LTD 139
    STEWARTS AND LLOYDS HOLDINGS (PTY) LTD 141
    TRONOX MINERAL SANDS (PTY) LTD 144
    UNICA IRON AND STEEL (PTY) LTD 146

    Report Coverage

    The Manufacture and Wholesale of Basic Iron and Steel discusses current developments, provides import and export data and discusses the factors that influence the success of the industry. Profiles for 43 companies are provided, including dominant player AMSA, the largest steel manufacturer on the continent, which increased its share of the local flat steel market to 75.5%, and the long steel market to 56.5% during 2017. Also profiled is BSi Steel Ltd, a manufacturer and wholesaler, which in March 2017 sold its 45% interest in Qinisa Steel Solutions to the Jamand Trust, and Barnes Southern Palace (Pty) Ltd which acquired a 74% share in Scaw from the Industrial Development Corporation (IDC) in February 2018.

    Introduction

    According to the World Steel Association (WSA), South Africa was the world’s 25th-largest crude steel producer in 2017, with output of 6.3 million tonnes (Mt), while 5.3Mt of iron was also produced. During 2017 South Africa exported 2.5Mt of semi-finished and finished steel products worth US$2.2bn, while 595.6 kilotonnes (kt) of iron worth US$198.1m was exported, according to the ITC’s Trade Map. However, the global oversupply of steel, high production costs, the fact that adequate amounts of affordable scrap metal are not available, and poor domestic demand continue to have a significant impact on the performance of local manufacturers and wholesalers of basic iron and steel.

    Strengths

    • Raw materials and iron ore are available in South Africa.
    • The steel manufacturing industry is well-established and able to fully supply domestic demand.
    • Wide range of end-users, with steel used in most sectors of the economy.

    Weaknesses

    • A shortage of highly-skilled employees.
    • Competition in the basic iron and steel manufacturing sector is low as ArcelorMittal South Africa (AMSA) dominates the market.
    • Energy-intensive production processes make producers vulnerable to high electricity costs.
    • High production costs, due to inefficiencies and ageing plants, caused by a lack of investment, maintenance and research and development.
    • Raw material coking coal has to be imported.

    Opportunities

    • After the re-commissioning of Evraz Highveld Steel and Vanadium’s heavy structural mill, locally-produced large structural steel products are again available to the market.
    • Imposition of higher tariffs and safeguard duty on imported steel and steel items.
    • Stipulation that locally-produced steel, steel products and components must be used in public sector construction projects.

    Threats

    • Depressed domestic demand due to low GDP growth, and a lack of infrastructure spending.
    • High rail and port charges, and inefficiencies on railway lines.
    • Increasing costs of electricity, water, raw materials and labour in particular pose a threat to the sector’s profitability and sustainability.
    • New tariffs on steel imports by the USA.
    • The current global oversupply which negatively affects steel sales volumes.
    • The fact that adequate amounts of affordable scrap metal are not available.
    • The planned introduction of a carbon tax.

    Outlook

    According to the Resources and Energy Quarterly report, global crude steel output is forecast to rise by 2.0% to reach 1,725Mt in 2018 and 1,740Mt in 2019. The WSA expects global demand for finished steel products to increase by 1.6% to reach 1,648.1Mt in 2018 as the economies of most countries are expected to grow moderately. Steel demand beyond 2018 is expected to be depressed by slower economic growth in China and a decline in steel intensity as a result of technological and environmental factors. According to the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), the local metals and engineering sector is expected to grow by 1.1% in 2018 as a result of global economic growth despite low domestic growth. However, ArcelorMittal South Africa (AMSA) expects local steel demand to be subdued in 2018 due to a lack of infrastructure spending and the low growth in the domestic economy. The company’s local sales are however forecast to increase as a result of lower imports, which should decline due to the imposition of higher import tariffs. AMSA also expects its export sales to rise thanks to higher prices and increased demand, especially from the rest of Africa.

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 1
    2.2. Geographic Position 2
    3. SIZE OF THE INDUSTRY 3
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 15
    4.1.3. Enterprise Development and Social Economic Development 15
    4.2. Continental 16
    4.3. International 18
    5. INFLUENCING FACTORS 21
    5.1. Economic Environment 21
    5.2. Rising Input Costs 22
    5.3. Environmental Concerns 23
    5.4. Government Support 23
    5.5. Technology, Research and Development (R&D) and Innovation 24
    5.6. Labour 25
    6. COMPETITION 26
    6.1. Barriers to Entry 27
    7. SWOT ANALYSIS 28
    8. OUTLOOK 29
    9. INDUSTRY ASSOCIATIONS 29
    10. REFERENCES 30
    10.1. Publications 30
    10.2. Websites 31
    COMPANY PROFILES 32
    A HOLMAN TRADING COMPANY (PTY) LTD 32
    AEROTON STEEL (PTY) LTD 34
    AFRICA PIPE INDUSTRIES (PTY) LTD 36
    AGNI STEELS SA (PTY) LTD 38
    ALLIED STEELRODE (PTY) LTD 40
    ANDREW MENTIS (PTY) LTD 43
    ARCELORMITTAL SOUTH AFRICA LTD 45
    ARGENT INDUSTRIAL LTD 49
    AUGUSTA STEEL (PTY) LTD 54
    AVENG LTD 56
    BARNES REINFORCING INDUSTRIES (PTY) LTD 60
    BARNES TUBING INDUSTRIES (PTY) LTD 62
    BOSAL AFRIKA (PTY) LTD 64
    BSI STEEL LTD 66
    CAPE GATE (PTY) LTD 70
    CAPITAL AFRICA STEEL (PTY) LTD 72
    CLOTAN STEEL (PTY) LTD 74
    COLUMBUS STAINLESS (PTY) LTD 77
    CONSOLIDATED STEEL INDUSTRIES (PTY) LTD 79
    CONSOLIDATED WIRE INDUSTRIES (PTY) LTD 82
    EVRAZ HIGHVELD STEEL AND VANADIUM LTD 85
    FISCHER SOUTH AFRICA FACILITIES (PTY) LTD 87
    GARSIN ENGINEERING CC 89
    GROUP FIVE LTD 91
    HALL LONGMORE (PTY) LTD 94
    HUDACO TRADING (PTY) LTD 96
    INDUSTRIAL METAL PROFILING CC 100
    INSIMBI REFRACTORY AND ALLOY SUPPLIES LTD 102
    IRON MINERAL BENEFICIATION SERVICES (PTY) LTD 107
    JAGUAR METALS (PTY) LTD 109
    MACDONALD STEEL SA (PTY) LTD 111
    MACSTEEL SERVICE CENTRES SA (PTY) LTD 113
    MAZOR GROUP LTD 120
    MESHCO (PTY) LTD 123
    MIRROR DATA (PTY) LTD 125
    N J R STEEL HOLDINGS (PTY) LTD 127
    NEVEN MATTHEWS (PTY) LTD 130
    PRO ROOF STEEL AND TUBE (PTY) LTD 132
    ROBOR (PTY) LTD 134
    SANDVIK (PTY) LTD 137
    SCAW SOUTH AFRICA (PTY) LTD 139
    STEELEDALE (PTY) LTD 143
    STEWARTS AND LLOYDS HOLDINGS (PTY) LTD 145

    Report Coverage

    The Manufacture and Wholesale of Basic Iron and Steel examines developments and investment in the sector, provides import and export data and discusses the factors that influence the success of the industry. Profiles for 39 companies are provided, including for the four primary steel producers, AMSA, Cape Gate, Columbus Stainless and Scaw Metals. Also profiled is Evraz Highveld Steel and Vanadium which initiated voluntary business rescue proceedings in April 2015 but concluded a contract manufacturing agreement with AMSA during December 2016. According to the agreement, Evraz Highveld will produce large structural steel products from blooms and slabs supplied by AMSA’s Newcastle and Vanderbijlpark plants that will be used in domestic construction and infrastructure projects.

    Introduction

    This report focuses on the manufacture and wholesale of basic iron and steel in South Africa. The sector produced 6.1 million tonnes (Mt) of crude steel in 2016, exported 2.0Mt of primary steel products worth R21.9bn, and contributed 1.5% to the country’s GDP. It is being adversely affected by the global oversupply of crude steel, lower priced imports from China, and poor domestic demand.

    Strengths

    • Metallic iron that is produced locally provides the local steel industry with a lower-cost alternative to scrap steel.
    • The steel manufacturing industry is well-established and able to fully supply domestic demand.

    Weaknesses

    • A shortage of highly-skilled employees.
    • Ageing plants and inefficiencies, due to a lack of investment and maintenance.
    • Competition in the basic iron and steel manufacturing sector is low as AMSA dominates the market.

    Opportunities

    • After the recommissioning of Evraz Highveld Steel’s heavy structural mill, locally-produced large structural steel products will again be available to the market.
    • Imposition of higher tariffs on imported steel and steel items.
    • Possibility of lower electricity tariffs due to surplus electricity situation.
    • Stipulation that locally-produced steel, steel products and components should be used in public sector construction projects.
    • The agreement between AMSA and the government that import parity pricing will no longer be used to determine the local price for flat steel, will ensure a fair steel price during all market conditions.

    Threats

    • Depressed domestic demand due to low GDP growth, and a lack of infrastructure spending.
    • Imports of cheap steel products from China.
    • Increasing competition from China in South Africa’s export markets in the rest of Africa.
    • Increasing costs of electricity, water and labour in particular, pose a threat to the sector’s profitability and sustainability.
    • The current global oversupply which negatively affects steel prices.
    • The planned introduction of a carbon tax.

    Outlook

    The World Steel Association forecasts that global steel demand will increase by 0.5% to reach 1,509.6Mt in 2017, while global steel production is expected to increase by 0.5% to 1,636Mt. According to the German steel federation, China’s overcapacity in steel production, which puts pressure on world steel prices, is expected to continue over the next few years. China\'s overcapacity was 360Mt in 2016, and the federation believes it will remain well above 300Mt in 2020.AMSA expects domestic steel demand to remain subdued in 2017, due to a lack of infrastructure spending, and the importation of semi-finished products, while exports should remain at 2016 levels. According to SEIFSA, the country’s basic iron and steel sector is expected to grow in 2017 by 4.9%, as a result of rising commodity prices and slightly improved economic conditions domestically and globally. Local growth expectations are however dependent on there being no production disruptions due to the forthcoming wage negotiations in the sector.

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 1
    2.2. Geographic Position 2
    3. SIZE OF THE INDUSTRY 3
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 14
    4.1.3. Enterprise Development and Social Economic Development 15
    4.2. Continental 16
    4.3. International 17
    5. INFLUENCING FACTORS 18
    5.1. Economic Environment 18
    5.2. Steel Imports 19
    5.3. Rising Costs 20
    5.4. Technology, Research & Development (R&D) and Innovation 22
    5.5. Labour 22
    5.6. Environmental Concerns 23
    6. COMPETITION 24
    6.1. Barriers to Entry 25
    7. SWOT ANALYSIS 25
    8. OUTLOOK 26
    9. INDUSTRY ASSOCIATIONS 27
    10. REFERENCES 27
    10.1. Publications 27
    10.2. Websites 28
    COMPANY PROFILES 29
    A HOLMAN TRADING COMPANY (PTY) LTD 29
    AEROTON STEEL (PTY) LTD 31
    AFRICA PIPE INDUSTRIES (PTY) LTD 33
    ALLIED STEELRODE (PTY) LTD 34
    ANDREW MENTIS (PTY) LTD 37
    ARCELORMITTAL SOUTH AFRICA LTD 39
    ARGENT INDUSTRIAL LTD 43
    AVENG LTD 48
    BARNES REINFORCING INDUSTRIES (PTY) LTD 52
    BARNES TUBING INDUSTRIES (PTY) LTD 54
    BOSAL AFRIKA (PTY) LTD 56
    BSI STEEL LTD 58
    CAPE GATE (PTY) LTD 61
    CAPITAL AFRICA STEEL (PTY) LTD 63
    CLOTAN STEEL (PTY) LTD 65
    COLUMBUS STAINLESS (PTY) LTD 68
    CONSOLIDATED STEEL INDUSTRIES (PTY) LTD 71
    CONSOLIDATED WIRE INDUSTRIES (PTY) LTD 74
    EVRAZ HIGHVELD STEEL AND VANADIUM LTD 77
    FISCHER SOUTH AFRICA FACILITIES (PTY) LTD 79
    GARSIN ENGINEERING CC 81
    GROUP FIVE LTD 83
    HALL LONGMORE (PTY) LTD 87
    INDUSTRIAL METAL PROFILING CC 89
    INNOVATIVE MINING PRODUCTS (PTY) LTD 91
    INSIMBI REFRACTORY AND ALLOY SUPPLIES LTD 93
    IRON MINERAL BENEFICIATION SERVICES (PTY) LTD 97
    JAGUAR METALS (PTY) LTD 99
    MACSTEEL SERVICE CENTRES SA (PTY) LTD 101
    MAZOR GROUP LTD 108
    MESHRITE (PTY) LTD 111
    MIRROR DATA (PTY) LTD 113
    NEVEN MATTHEWS (PTY) LTD 115
    NJR STEEL HOLDINGS (PTY) LTD 117
    PRO ROOF STEEL AND TUBE (PTY) LTD 120
    ROBOR (PTY) LTD 122
    SANDVIK (PTY) LTD 125
    SCAW SOUTH AFRICA (PTY) LTD 127
    STEWARTS AND LLOYDS HOLDINGS (PTY) LTD 131

    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.

    Introduction

    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 at 25% below local production costs.

    Strengths

    • Strong Government support including funding for the manufacturing and fabrication industry and the introduction of the 10% import tariff on selected steel items.
    • The local industry supplies products of high quality.
    • The steel manufacturing Industry is well-established and able to fully supply domestic demand.
    • There is enough iron ore at a reasonable price to satisfy local manufacturing demand.

    Weaknesses

    • Competition in the basic and iron steel manufacturing sector is low as AMSA dominates the market.
    • Failure by Government to enforce local procurement regulatory provisions.
    • It is an energy-intensive industry.
    • South Africa is relatively far from its major export markets.
    • The current oversupply which negatively affects steel prices.
    • The industry is dependent on the success of the mining, construction and automotive sectors.
    • The local industry is not competitive enough partly due to the lack of import protection.

    Opportunities

    • Government’s proposed spending of R813bn on infrastructure.
    • Increasing demand from Africa.
    • New legislation and import tariffs which should increase cost advantages for local producers.
    • The designation of steel and higher local content in domestic procurement by the public sector.

    Threats

    • Continued shortage of skills.
    • Demand out of Africa could decline in sync, due to its dependence on Chinese demand for its commodities for its own growth.
    • Electricity supply constraints.
    • Increasing input costs, which threaten the competitiveness of the steelmaking sector.
    • Increasing quantities of cheap imports of steel and steel products from China, as well as India.
    • Lack of competitiveness of the downstream and wholesale sector as a result of newly introduced import tariffs on steel.
    • Proposed carbon tax which will place further pressure on already low margin of steelmakers.
    • Slowing economic growth in all sectors of the economy.

    Outlook

    Analysts concur that the future existence and sustainability of the South African iron and steel industry is essential for the economic growth and development of all sectors in the country. Although stakeholders in the upstream sector have applauded the imposition of the 10% import tariff on some steel imports, they realise that downsizing is unavoidable and that retrenchments will continue. A “torrid few months ahead” has been predicted by Martin Creamer and other commentators. However, the fast-tracking of the remaining Itac applications for import tariffs on almost all steel items and the possibility of anti-dumping applications being upheld are providing a glimmer of hope for embattled steel producers. NUMSA’s Irvin Jim emphasised the importance of ensuring all state-owned enterprises source steel locally in an attempt to make the local sector more competitive against cheap imports. SEIFSA’s CEO commented, “Cooperation amongst business, government and labour to find solutions is critical. We are encouraged by recent approaches to tackle the current steel crisis, and we can only hope for more such trilateral approaches in future. Only such an approach will stand a good chance of lasting success.”

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    Table of Contents

    [ Close ]
    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

    Report Coverage

    The Manufacture of Iron & Steel in South Africa evaluates the domestic industry, government attempts to stimulate local manufacture and factors influencing the sector’s success. The report also profiles 25 industry players, ranging from the local arm of multi-national ArcelorMittal to small enterprise NJR Steel Holdings (Pty) Ltd, which employs 14 people in the manufacture of sheet and plates and hot rolled flat products.\r\n

    Introduction

    This report focuses on the manufacture of basic iron and steel. End products range from steel in its most basic raw material form as ingots, lumps, powders, blooms or billets and these could be used in further processing in rolling mills which produce flat products such as heavy steel sheet or lighter rolled coil or long product such as profiles, bars, rods or tubes. South Africa was ranked the 21st largest steel producer by the World Steel Association and produced 7.2 million tonnes of crude steel in 2014 which accounted for 0.4% of global production. Trading conditions have been challenging in recent years with stiff competition from Asian producers driving prices down but exports to countries in Africa have grown.

    Strengths

    • The industry supplies products of high quality.
    • The steel manufacturing industry is well-established and able to fully supply domestic demand.
    • There is enough iron ore to satisfy local manufacture.

    Weaknesses

    • Competition in the basic and iron steel manufacturing sector is low as ArcelorMittal SA dominates the market.
    • It is a capital-intensive industry that has to produce large volumes to be profitable.
    • It is an energy-intensive industry.
    • Local industry is not competitive enough partly due to the lack of import protection.
    • South Africa is relatively far from its major export markets.
    • When demand drops, there is a situation of oversupply which negatively affects steel prices.

    Opportunities

    • Government’s proposed spending of R847.3bn on infrastructure.
    • Increasing demand from Africa.
    • New legislation and tariffs which are expected to create cost advantages for local producers.
    • Support provided by Government policies and funding.
    • The establishment of a new local steel producer, a JV between the IDC and Hebei Iron & Steel Group (HISG).

    Threats

    • Continued shortage of skills.
    • Electricity supply constraints.
    • Increasing input costs, which threaten the competitiveness of the steelmaking sector.
    • Increasing volumes of cheap imports of steel and steel products.
    • Proposed carbon tax which will place further pressure on already low margins of steelmakers.

    Outlook

    Growth in international demand for steel is only expected to pick up slightly during 2015 as a result of slowing demand from China. This is despite the low steel prices resulting from the supply of cheap iron ore by Australia and Brazil. Locally, stakeholders expressed concern that government infrastructure spend will not happen as quickly as is needed to stimulate economic growth. This will be compounded by the inconsistent, unreliable electricity supply. Firm plans for a second crude steel producer are unlikely to materialise in the near future given the lack of demand as well as the imports of cheap steel which analysts claim are being dumped in the country. However, some respondents expressed optimism that tariff protection on four steel products will be introduced by Itac as requested by ArcelorMittal SA, following SAWA’s successful application for tariffs on some wire products. In the meantime, local processors and fabricators are looking at the opportunities in the rest of Africa. Despite the IMF’s 2015 forecast for economic growth in sub-Saharan Africa having been trimmed to 5% due to lower oil and commodity prices, there is “massive construction activity in cities and emerging urban areas. A growing population, increased income levels and economic growth has created more demand for residential and commercial property.” The SAISC CEO believes that South African steel companies will have a competitive advantage in this region.

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 2
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 6
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 13
    4.1.3. Enterprise Development and Social Economic Development 15
    4.2. Continental 16
    4.3. International 17
    5. INFLUENCING FACTORS 19
    5.1. Government Intervention 19
    5.2. Economic Environment 23
    5.3. Lack of import protection 23
    5.4. Power Supply Issues 24
    5.5. Input Costs 24
    5.6. Cyclicality 25
    5.7. Labour 27
    5.8. Information Technology 29
    5.9. Environmental Concerns 29
    6. COMPETITION 30
    6.1. Barriers to Entry 31
    6.2. Innovation and R&D 31
    7. SWOT ANALYSIS 32
    8. OUTLOOK 33
    9. INDUSTRY ASSOCIATIONS 33
    10. REFERENCES 34
    10.1. Publications 34
    10.2. Websites 34
    ORGANOGRAM 35
    COMPANY PROFILES 37
    AFRICA PIPE INDUSTRIES (PTY) LTD 37
    ARCELORMITTAL SOUTH AFRICA LTD 39
    ARGENT INDUSTRIAL LTD 45
    ARGENT STEEL GROUP (PTY) LTD 49
    AVENG TRIDENT STEEL (PTY) LTD 51
    BARNES TUBING INDUSTRIES (PTY) LTD 55
    BOSAL AFRIKA (PTY) LTD 57
    CAPE GATE (PTY) LTD 59
    COLUMBUS STAINLESS (PTY) LTD 61
    DUFERCO STEEL PROCESSING (PTY) LTD 64
    EVRAZ HIGHVELD STEEL & VANADIUM LTD 66
    FISCHER SOUTH AFRICA FACILITIES (PTY) LTD 70
    GARSIN ENGINEERING CC 72
    GROUP FIVE PIPE JOINT VENTURE 74
    HALL LONGMORE (PTY) LTD 76
    INNOVATIVE MINING PRODUCTS (PTY) LTD 78
    INSIMBI REFRACTORY & ALLOY SUPPLIES LTD 80
    JAGUAR METALS (PTY) LTD 83
    MACSTEEL SERVICE CENTRES SA (PTY) LTD 85
    NEVEN MATTHEWS (PTY) LTD 92
    NJR STEEL HOLDINGS (PTY) LTD 94
    PRO ROOF STEEL MERCHANTS (VRN) (PTY) LTD 97
    ROBOR (PTY) LTD 99
    SALDANHA STEEL (PTY) LTD 103
    SCAW SOUTH AFRICA (PTY) LTD 105

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