Industry revenue of “manufacture of basic iron and steel“ in South Africa 2011-2023
Until two decades ago, South Africa’s iron and steel industry was one of the main pillars of the South African economy. However, post the 2009 financial crisis, the industry’s contribution to the overall GDP has fallen considerably, owing to reduced production due to the availability of cheaper imports, challenging trading conditions, high tariffs and lack of infrastructural developments. Therefore, industry revenues are projected to grow only marginally between 2018-2023.
South African steel production fell 17.8 percent year-on-year in August 2019, to an estimated 434,000 tonnes, according to figures from the World Steel Association. Majority of steel is imported into the country from China, the largest steel exporter globally.
The outbreak of the Covid-19 virus has caused further distress within the industry with production expected to drop by as much as 50% over the short term. The department of trade and industry has warned that the steel industry could experience a loss of ZAR 1 billion amid the on-going lockdown unless the government intervenes with bailout packages.
South African steel production fell 17.8 percent year-on-year in August 2019, to an estimated 434,000 tonnes, according to figures from the World Steel Association. Majority of steel is imported into the country from China, the largest steel exporter globally.
The outbreak of the Covid-19 virus has caused further distress within the industry with production expected to drop by as much as 50% over the short term. The department of trade and industry has warned that the steel industry could experience a loss of ZAR 1 billion amid the on-going lockdown unless the government intervenes with bailout packages.
