JULY 2020Sweet like sugar, solid like steel: Patel unpacks moves to save industriesMinister of Trade, Industry and Competition Ebrahim Patel, told Parliament’s Portfolio Committee on Trade and Industry that the sugar and steel industries in South Africa have been allowed to operate in the country during the lockdown, but were still being undermined by dynamics such as oversupply and cheap imports. AMSA seeks import protection on hot-rolled coil and heavy beamsSteel producer ArcelorMittal South Africa (AMSA) has submitted two separate applications to the International Trade and Administration Commission of South Africa (Itac) requesting import protection on hot-rolled coil (HRC) and heavy structural beams respectively. Seifsa warns of impact of higher electricity tariffs on metals, engineering sectorIndustry organisation, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) says it is “disappointed” about the recent court judgment against the National Energy Regulator of South Africa (Nersa). Sasol to sell world’s biggest oxygen production site to Air LiquideJSE-listed petrochemicals company Sasol has signed a negotiation agreement with industrial gas company Air Liquide for the sale of Sasol South Africa’s 16 air separation units (ASUs), in Secunda. Virtual event to showcase opportunities arising from mega Moz gas projectsA virtual event is being planned for early August to expose South African companies to the opportunities that are likely to arise directly from the mega-scale liquefied natural gas (LNG) projects that are starting to take shape in northern Mozambique, as well as various associated projects, ranging from a new airfield, to housing, roads, warehouses and offices. Solidarity welcomes DTIC’s move to investigate scrap metal supplyTrade union Solidarity has welcomed Trade and Industry Minister Ebrahim Patel’s trade policy directive, which proposes an investigation into measures to help support the South African metals industry, which is facing significant challenges. Mining output down nearly 30% y/y, but up by 44% m/m in MayMining production decreased by 29.8% year-on-year in May, as a result of the lockdown restrictions in South Africa. This follows April’s (revised) unprecedented plunge of 50.3% year-on-year, says Investec, with restrictions on production, global growth concerns, together with supply chain disruptions and subdued domestic demand continuing to weigh on mining activity in May. Investors in mining exploration should be incentivised – ANC’s ETCListings of mining companies on the Johannesburg Stock Exchange should be encouraged and South African retail investors willing to invest in mining exploration should be incentivised as is the case in other mining jurisdictions, the economic transformation committee (ETC) of the African National Congress (ANC) states in a 30-page discussion document just released. Patel directs Itac to look into scrap metal price preference systemTrade and Industry Minister Ebrahim Patel has issued a trade policy directive to the International Trade Administration Commission of South Africa (Itac) to urgently look into measures to help support the scrap metals industry. Seifsa eagerly awaits scrap metal industry reliefThe Steel and Engineering Industries Federation of Southern Africa (Seifsa) has welcomed government’s announcement that it has tasked the International Trade Administration Commission (Itac) of South Africa to look into measures to support the metals and engineering (M&E) sector. JUNE 2020Metals, engineering sectors to ‘walk the tightrope’ to economic recoveryThe road to the metals and engineering (M&E) sector’s post-Covid-19 recovery will be long and will require extraordinary and targeted policies to walk the tightrope towards an economic reboot, Steel and Engineering Industries Federation of Southern Africa (Seifsa) chief economist Dr Michael Ade said in a statement on June 24. Pandemic dashes hopes for a domestic steel sector turnaroundThe international Covid-19 outbreak, which has disrupted the South African and global economies, has thrown another “spanner in the works” for the already embattled domestic steel sector and could seriously hamper, or even prevent, a recovery. Covid-19 compounds challenges in AfricaThe legislation put in place amid the Covid-19 pandemic is compounding the “exceptionally challenging” business environment already faced by companies when operating in Africa, where each country presents its own challenges, says Macsteel Exports senior branch manager Adrian Isemonger. MAY 2020ISSF announces winners of the Stainless Industry Awards in a webinarColumbus Stainless, won first prize for a project aimed at developing modular constructions using 3Cr12 grade stainless steel. The project was developed with Turnkey Modular, with which a manufacturing technique was achieved that takes advantage of the considerable flexibility and precision of laser-cut construction components, thus forming an exceptionally strong exoskeleton structure. This has enabled the product to be extremely scalable without the need for intervention of other processes. Local tanks on track for delivery to Zim mineTen large steel tanks for diversified miner RioZim’s Cam and Motor gold mine, in Zimbabwe, are on schedule to be installed by South African stainless steel fabrication and erection specialist Betterect, as part of the mine’s gold processing plant expansion. Lockdown further strains stainless steel recyclingPrior to the national lockdown, South Africa’s stainless steel recycling industry was under strain, facing a dramatic drop in available recycling material and increasing input costs, says Johannesburg-based stainless steel recycler Cronimet director Bernard Maguire. Macsteel merges fluid control, pipes divisionsSteel and value-added steel products supplier Macsteel has merged its fluid control division with its pipes, fittings and flanges division. The vertical merger forms part of the company’s focus on increasing operating efficiency and strengthening its position in the challenging economic climate. Pandemic, economic challenges to shape industry directionIndustry trends are likely to take a new direction because of the global Covid-19 pandemic and a severely constrained local economy, says steel and value-added steel products merchandiser and distributor Macsteel. Steel production likely to stagnate or decline this year, says RoskillSteel production in developed economies is likely to either stagnate, or decline completely, as the Covid-19 pandemic continues to influence and impact on the global economy, consultancy Roskill steel alloys principal consultant Erik Sardain said on May 5. Fitch Solutions expects most metal markets to move into a surplus this yearMost metals markets are expected to move into a surplus this year, says research firm Fitch Solutions, noting that consumption is likely to decrease more than the decreases in production capacity, as a result of the spread of Covid-19. APRIL 2020Stainless steel from NAS aids in fight against COVID-19North American Stainless and its 1.500 workers are producing thousands of tons of high-quality stainless steel used on the front lines of the U.S. healthcare system as it battles COVID-19, according to the company’s CEO Cris Fuentes. Steel downturn evident in global production figures for MarchWorld crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) decreased by 6% year-on-year in March to 147-million tonnes. EU reviewing steel imports in view of possible glut – trade chiefThe coronavirus crisis could lead to massive stockpiling of steel that could then flood the European Union when demand returns, the EU trade chief said on Tuesday, adding this was something the bloc would seek to guard against. Organisation calls for govt assistance to ‘reshape’ steel industry post-lockdownThe decision to put South Africa under lockdown as part of its response to Covid-19 “has put further pressure on the steel industry”, says research organisation Trade and Industrial Policy Strategies (Tips). South Africa lockdown squeezes global chrome supplySamancor Chrome, one of the world’s biggest ferrochrome producers, has declared force majeure because of South Africa’s 21-day coronavirus lockdown, removing further supply from global chrome markets. MARCH 2020NDE stainless steel active during COVID-19 lockdownAlong with many of our customers and the rest of South Africa, NDE is going into lockdown in full support of government’s commendable actions to slow the spread of the pandemic with the following measures (until further notice):
Warning of ‘significant losses’ in South African mining industry if coronavirus outbreak is not contained soonA newly released report by Trade and Industrial Policy Strategies (TIPS) warns that South Africa’s mining industry could suffer “significant losses” should the coronavirus, or Covid-19, not be contained in the short term, which the authors defined as being by April 2020. FEBRUARY 2020Local steel industry still holds much potentialThe current capacity and capabilities of the local steel industry are still largely understated, says export trade promotion agency the International Steel Fabricators (ISF). Stainless steel growth unlikely in 2020The level of activity in the local stainless steel sector’s value chain has dwindled in the past decade, mainly owing to international competition, low steel prices and the slow growth of the local economy. Metals, engineering sector set for ‘unremarkable’ growth this yearLast year was generally challenging for both the domestic and global economy, as weakening demand, manufacturing and trade and investment restrained progress, with extended negative implications for the metals and engineering (M&E) sector, which is poised for “unremarkable” growth this year. Patel asked to brief lawmakers on government’s response to ongoing steel job cutsThe opposition Democratic Alliance (DA) has written a letter to Trade and Industry Minister Ebrahim Patel calling on him to brief lawmakers about developments at steel group ArcelorMittal South Africa (AMSA), which recently warned of additional job cuts at the company. Coronavirus hurts base metals, iron-ore pricesThe outbreak and contagion of a new strain of the coronavirus – which began in the Chinese city of Wuhan in December – has contributed to renewed concerns over economic growth prospects, particularly in China. JANUARY 2020Global crude steel output increased 3.4% in 2019Global crude steel production increased by 3.4% year-on-year to 1.87-billion tonnes in 2019, despite output having contracted in all regions, except Asia and the Middle East, industry association, the World Steel Association (worldsteel), reports. Samancor Chrome may cut nearly 2 500 jobsSouth African miner Samancor Chrome said it could cut close 2 500 jobs in response to weak chrome prices and power supply problems, according to a letter to unions seen by Reuters on Wednesday
|