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Manufacture and Wholesale of Basic Iron and Steel
BY Alex Conradie
South Africa
26 June 2019
R 14 400.00 (ZAR)  
estimated $ 1 016.14 (USD) *
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Manufacture and Wholesale of Basic Iron and Steel


South Africa was the world’s 25th-largest crude steel producer in 2018, with output of 6.3 million tons (Mt). South Africa exported 2.7Mt of semi-finished and finished steel products worth US$2.4bn. The country produced 5.4Mt of iron and exported 662.4 kilotons (kt) of iron worth US$245.2m. The volume of basic iron and steel products produced increased by 1.6% between in the year to March 2019, while the sales value of these products at current prices rose by 9.0% over the same period. 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.


Industry Under Threat


The local steel sector has been in decline since 2008/9, with pricing, margins and profitability being negatively affected by surplus, the large number of competitors, weak demand, and imports of cheap steel. Demand from the important steel-consuming construction sector has decreased as fewer projects are being undertaken by the private and public sectors. Consumption by the mining sector has also declined. The stainless steel industry is affected by cheaper imports from China, high labour costs, and increasing electricity prices. A proposed US$10bn metallurgical complex in the Musina Makhado special economic zone is expected to have significant repercussions for the local industry.


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.


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