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manufacture wholesale basic iron steel industry south africa

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

Alex Conradie | South Africa | 11 May 2022

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

Alex Conradie | South Africa | 26 June 2019

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

Alex Conradie | South Africa | 17 April 2018

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

Alex Conradie | South Africa | 24 March 2017

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

Elaine de Villiers | South Africa | 19 October 2015

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

Gareth Barnard | South Africa | 04 March 2015

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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.

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 Industry in South Africa 2022

Full Report

R 9 500.00(ZAR) estimated $497.17 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 348.02 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 23.55 (USD)*

Historical Reports

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (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 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

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.

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

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $497.17 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $497.17 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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Table of Contents

[ Close ]
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

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.

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

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $497.17 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (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 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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The Manufacture and Wholesale of Basic Iron and Steel Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $497.17 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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

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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.

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.

Read More..
The Manufacture and Wholesale of Basic Iron and Steel Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $99.43 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.60 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 23.55 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $497.17 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $99.43 (USD)*

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Table of Contents

[ Close ]
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