DECEMBER 2024
Simmering steel tensions coming to boil as Newcastle mill’s survival comes under spotlight again
Long simmering tensions in South Africa’s steel sector appear to be coming to a boil following a joint statement by the National Union of Metalworkers of South Africa (Numsa) and ArcelorMittal South Africa (AMSA)
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NOVEMBER 2024
Columbus Stainless calls for holistic govt approach to safeguard domestic steel production
Cooperation between the South African government and the steel manufacturing industry is imperative to address the underlying economic and other issues that created the current lack of local demand for steel, as well as protection to assist the local industry in defending itself against outside threats such as excessive imports, stainless steel flat products producer Columbus Stainless says in a statement.
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OCTOBER 2024
China’s steel demand has shrunk to less than half global total
China will account for less than half of global steel consumption in 2024 for the first time in six years, according to the World Steel Association, as the decline in the country’s real estate sector pummels demand for the metal.
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‘Support and commitment’ not enough to save long steel business, urgent action needed – AMSA
Government’s support for, and commitment to, addressing the removal of export tax on scrap metal, resetting the price preference system (PPS) mechanism at an appropriate level, implementing trade measures and reducing logistics and energy costs are insufficient and more urgent action is needed to save steel producer ArcelorMittal South Africa’s (AMSA’s) long steel business, the company said in a voluntary trading update on October 16.
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South African steel industry needs stable demand to be import-competitive for grid pylons
A study benchmarking the price of steel transmission grid pylon towers and what South African manufacturers can do to compete with Chinese and Turkish imports showed that “a bit of” stable demand was needed to enable local manufacturers to compete effectively.
SEPTEMBER 2024
Seifsa president sees new political climate as opportunity to revive metals sector
Steel and Engineering Federation of Southern Africa (Seifsa) president Elias Monage has described the establishment of the Government of National Unity (GNU) as an opportunity to revive the metals and engineering sector by fixing the basics and raising infrastructure spend.
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SEPTEMBER 2024
ND Engineering announced the overall winner at this year’s Stainless Steel Awards
The Southern Africa Stainless Steel Development Association (Sassda) has announced the winners of its Stainless Steel Awards after a five-year hiatus, with ND Engineering having been awarded the overall winner title owing to its consistent excellence across multiple categories.
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Organisation reintroduces awards, promotes sustainability
Celebrating its sixtieth anniversary, the Southern African Stainless Steel Development Association (Sassda) has reintroduced the Sassda and Columbus Stainless Awards – with the theme of innovation and sustainability – this month, following a five-year hiatus.
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AUGUST 2024
SA’s automotive prospects clouded by high taxes and exports risks
The importance of export growth as an automotive industry strategy is crucial to mitigate the numerous risks associated with South Africa’s low growth environment.
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Steel giant sees first demand ‘green shoots’ in years as GNU prioritises infrastructure and localisation
Steel producer ArcelorMittal South Africa (AMSA), which has been bemoaning weak domestic demand conditions for several years, reports that it is witnessing signs of “green shoots” in manufacturing and has also expressed cautious optimism over a potential for a recovery in energy-, construction- and automotive-related demand.
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JULY 2024
Aggressive scrap metal policies should be based on transparent data, not conjecture, expert says
Significant alterations to existing scrap metal regulations and outright bans – albeit temporary – on the trade of certain scrap metals should not be made without access to transparent and accurate sector data, international trade consultancy XA Global Trade Advisors director Donald MacKay has said.
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Localisation to be used to create early-stage demand in targeted sectors – Tau
While proclaiming industrial policy to be the “centre piece” of the government of national unity’s economic development strategy, new Trade, Industry and Competition Minister Parks Tau indicated he would be leaning on local procurement to create early-stage demand in targeted sectors.
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Steel tariff boosts Amsa’s prospects
Tariff comes as major producer ArcelorMittal SA is trying to find its feet amid lower demand. SA’s largest steel producer, ArcelorMittal SA (Amsa), has received a shot in the arm after the government imposed a 9% duty on imports of hot-rolled steel products.
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New trade and industry leadership expected to use industrial policy levers to support key sectors
With industrial policy back in fashion in many economies, business and policy specialists expect new Trade, Industry and Competition Minister Parks Tau to prioritise measures to support key sectors, including those aligned to the emerging green economy.
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AMSA to continue operating longs business, but instability at flats unit hits earnings
Despite a negative trading update, steel producer ArcelorMittal South Africa (AMSA) has announced that it will continue to operate its longs business, the closure of which was deferred earlier this year while various initiatives aimed at saving the unit were pursued with government, labour and other stakeholders.
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JUNE 2024
Neasa asks Patel, Itac to stop imposing upstream steel import duties
The National Employers’ Association of South Africa (Neasa) says government’s duties on imported steel only serve to support ailing primary steel producer ArcelorMittal South Africa (AMSA).
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MAY 2024
Patel to leave Cabinet after elections
Trade, Industry and Competition Minister Ebrahim Patel has announced that he will conclude his service in Cabinet after next week’s election
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Sassda’s involvement in Steel Master Plan drives several projects
The Southern Africa Stainless Steel Development Association (Sassda) is one of the most active stainless steel industry associations in the world and has, since 1964, been involved in increasing the awareness and use of stainless steel in Southern Africa.
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Seifsa, Numsa conclude three-year metals, engineering sector wage agreement
After three formal engagements, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) and trade union the National Union of Metalworkers of South Africa (Numsa) have concluded the terms of a three-year wage agreement for the metals and engineering sector.
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Auto exports soar to new record; shift to EVs sees drop in catalytic converter numbers
Despite a tough domestic economy undermining a recovery in new-vehicle sales to pre-pandemic levels, record vehicle exports in 2023 ensured that the South African automotive sector still managed to outperform the rest of the manufacturing sector, says Naamsa | The Automotive Business Council chief trade and research officer Dr Norman Lamprecht.
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Air Products to leverage expertise to bolster South Africa’s hydrogen mobility ecosystem
Industrial and specialty gas manufacturer and supplier Air Products South Africa is looking to leverage on the group’s global expertise and experience in the hydrogen industry, as well as its technology offering, to play a pivotal role in establishing a sustainable and thriving hydrogen mobility ecosystem in the country.
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AMSA to convert one Vanderbijlpark blast furnace to an electronic arc furnace by 2028
Steelmaker ArcelorMittal South Africa (AMSA) CEO Kobus Verster has confirmed that the company will be converting one of its three blast furnaces into an electronic arc furnace (EAF) within the next four years.
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AMSA expects to break ground on Vanderbijlpark’s 200 MW solar plant this year
Steelmaker ArcelorMittal South Africa (AMSA) is planning to start construction on a 200 MW solar photovoltaic (PV) power plant at its Vanderbijlpark facility, in Gauteng, towards the end of the year, CEO Kobus Verster has told Engineering News.
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APRIL 2024
Mill highlights benefits of stainless steel for sugar industry
Using stainless steel in the sugar industry, where processing conditions can be particularly corrosive, has proven to be an effective solution in mitigating wear-related challenges, says South African stainless steel mill Columbus Stainless market development manager Lerato Mashigo.
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Industry leaders, innovators to congregate at Machine Tools Africa
Stay abreast of industry trends, gain insight to the latest technologies, and see hundreds of new products and innovations on display at the world-class Machine Tools Africa exhibition, taking place from 21-24 May 2024 at the Johannesburg Expo Centre in Nasrec.
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MARCH 2024
SASSDA revives sought after Awards in Celebration of its 60th Anniversary
As Sassda proudly celebrates its 60th Anniversary in 2024, it has also announced the highly anticipated return of the Sassda & Columbus Stainless Steel Awards supported by title sponsor Columbus Stainless and category sponsors Euro Steel, Macsteel and NDE.
Centred around the theme, ‘Sustainability: A Legacy of Brilliance’ the awards will take place on 19th September 2024 and will honour the enduring strength and durability of stainless steel, while recognising the resilience of the local stainless steel industry in navigating the current challenges it faces.
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Low demand threatens sustainability
The South African steel sector is facing significant challenges, primarily because of oversupply, in addition to very little demand, coupled with economic constraints.
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FEBRUARY 2024
Metals, engineering output up 1.7% but still far below 2008/9 peak
While aggregate production in the South African metals and engineering sector increased by 1.7% last year, which is slightly higher than the 1.5% increase in 2022, it remains 18% below where it was in 2008/9
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JANUARY 2024
More than 290 000 jobs on the line as steel sector continues its decline, Seifsa warns
Over a five-year period, the average 1.3% a year decline in the metals and engineering sector will lead to an average 2.9% decline in employment, or 293 754 direct and indirect job losses, industry organisation Steel and Engineering Industries Federation of Southern Africa (Seifsa) COO Tafadzwa Chibanguza warns
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Downstream companies implore ArcelorMittal South Africa, govt to avoid long steel plant closures
The South African downstream steel industry has urgently appealed to both steel producer ArcelorMittal South Africa (AMSA) and the government to find immediate solutions that will allow the continued operation of the three AMSA plants that make up the company’s long steel business in South Africa.
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US agrees preliminary deal with Africa on extending Agoa by ten years, says Patel
The US has reached preliminary agreement with African nations to extend their preferential trade access by another decade, pending approval by Congress, South Africa’s trade minister said.
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Seifsa hopes for more PPPs this year
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) will continue to advocate for more private sector participation in public infrastructure this year, with CEO Lucio Trentini stating that many of the country’s challenges can be best addressed through private-public partnerships (PPPs).
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DECEMBER 2023
Report poses serious questions about effectiveness of scrap export ban
Serious questions about the effectiveness and desirability of South Africa’s prevailing scrap export ban have been raised in a new report, which calls for its immediate lifting unless evidence can be produced showing that the ban is having the desired effect of preventing infrastructure-related theft.
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NOVEMBER 2023
ArcelorMittal SA CEO sees no way of avoiding longs closure, says wind down to start in Jan
ArcelorMittal South Africa (AMSA) CEO Kobus Verster believes there is no immediate prospect of addressing the structural issues undermining the financial viability of the group’s long-products business and tells Engineering News that the operations will begin ramping down during January, when they are scheduled to stop receiving steelmaking materials, such as iron-ore.
Seifsa urges dtic not to extend scrap metal ban
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) says it has noted with concern submissions by other entities to the Department of Trade, Industry and Competition (dtic) calling for the extension to the scrap metal export ban which is scheduled to come to an end in December.
Sasol, Air Liquide conclude corporate PPA with Mainstream for 97.5 MW solar project
A 97.5 MW solar photovoltaic (PV) project will be constructed in the Free State following the signing of a 20-year corporate power purchase agreement (PPA) between Mainstream Renewable Power and industrial groups Sasol and Air Liquide.
OCTOBER 2023
More education initiatives needed in local industry
Education and skills development remain indispensable for the South African stainless steel industry, however, the training and development of productive and skilled staff has become a “major stumbling block” to the growth of the industry, says Southern Africa Stainless Steel Development Association (Sassda) executive director Michel Basson.
Steel demand expected to increase by 1.8% this year, 1.9% in 2024 – worldsteel
The World Steel Association (worldsteel), in an update of its Short Range Outlook (SRO) for 2023 and 2024, forecasts that steel demand will grow by 1.8% this year to 1.81-billion tons after having contracted by 3.3% in 2022.
SASSDA strives to unlock the power of local stainless steel
The use of local stainless steel is crucial to driving demand and the subsequent beneficiation of this highly prized metal but work still needs to be done to cement the correct specifications of South African stainless steel components in key strategic projects.
This is the view of the Southern African Stainless Steel Development Association (Sassda) which together with the local demand-creating structures of the Steel Master Plan (SMP) has identified and placed a focus on the following projects that can positively impact the local conversion of stainless steel.
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Summit outlines industry plans
International trade limitations, owing to slow market growth in Europe and the US, have, in turn, sparked the implementation of stringent trade conditions in the South African stainless steel industry, says South African Iron and Steel Institute (Saisi) secretary-general Charles Dednam.
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Fuel cell electric vehicle demonstration seen as catalyst for nascent green hydrogen economy
Toyota Mirai fuel cell electric vehicle (FCEV) was refuelled with hydrogen produced by Sasol, using an Air Products dispensing technology.
In a milestone for South Africa’s nascent green hydrogen economy, three large corporates have teamed up to showcase the potential of using domestically produced hydrogen as a zero-emission transportation alternative.
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SEPTEMBER 2023
Stainless steel sector fights for right to supply local parastatal projects
The use of local stainless steel is crucial to driving demand and the subsequent beneficiation of this highly prized metal, but work still needs to be done to cement the correct specifications of South African stainless steel components in key strategic projects, states the Southern African Stainless Steel Development Association (Sassda).
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Climate change, regionalisation to impact on global steelmaking
Global body World Steel Association director-general Dr Edwin Basson contends that signficant trends such as climate change and the need to decarbonise industrial activity, as well as regionalisation and shifts in steel production regionally, are set to significantly impact on global steel production in the coming years.
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Coega Steel Mill project in Eastern Cape to provide rolled metal for manufacturing
Coega Steels, a producer of steel products, aims to establish a state-of-the-art R160 million rolling mill facility project in the Eastern Cape, with the goal to be built by next year.
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New report says localisation policy locking South Africa into ‘wrong path’
A new Centre for Development and Enterprise (CDE) report argues that the South African government’s policy of localisation is locking the country “into the wrong path” of rising protection and rising inefficiency.
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Sector mulls duty’s future
The intricate task of reconciling the interests of divergent stakeholders, including local manufacturers and downstream industries, lies at the heart of ongoing deliberations by the International Trade Administration Commission of South Africa (Itac) and the Department of Trade, Industry and Competition (DTIC).
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AUGUST 2023
Steel industry vital for South Africa’s industrialisation, Majola says
Trade, Industry and Competition Deputy Minister Fikile Majola has stressed the impact of the local steel industry and its importance to South Africa’s industrialisation, and the challenges that the sector is facing from local and global pressures, emphasising the need to build an “inclusive sector” that contributes to the economy.
Global crude steel production for the 63 countries reporting to the World Steel Association increased by 6.6% year-on-year to 158.5-million tonnes in July.
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Steel suppliers expected to meet new standards
With greater emphasis being placed on safety in the South African steel industry, local suppliers of conveyance piping can no longer merely be accredited by the South African Bureau of Standards (SABS), owing to the South African National Accreditation System (SANAS) having suspended the SABS’ authority to ensure safety and quality standards of these products, with the exception of light wall, low-pressure piping.
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Green steel producer receives clean audit on low CO2 emissions
Ater officially releasing its steel plants’ carbon dioxide (CO2) emissions results, special steel products producer Swiss Steel Holding AG commissioned assurance and risk management provider DNV Business Assurance Germany to perform an independent audit for the 2021 financial year.
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Air Products grows its Gas and Welding Portfolio with Acquisition of EWN&S
Air Products South Africa, and its subsidiary Weldamax, have strengthened their gas and welding portfolio by the acquisition of a controlling interest in EWN&S. EWN&S and Weldamax were formerly independent distributors of Air Products’ industrial gases as well as supplying a comprehensive range of welding equipment and consumables.
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JULY 2023
Steel production for June flat, but six-monthly output decreases 1%
The World Steel Association (worldsteel) has reported global production by the 63 countries reporting to it, of 158.8-million tonnes in June.
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Non-competitiveness, non-use plague South African steel industry
The current state of the South African steel industry is one where a lack of competitiveness and the non-use of its installed production capacity continue at a concerning rate, relative to other steel-producing developing countries.
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SMP driving manufacturing opportunities
Within the framework of the Steel Master Plan (SMP), industry body Manufacturing Circle is taking an active role in driving demand-side manufacturing opportunities.
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Firm takes another step towards decarbonisation goals
Despite volatile markets and a difficult geopolitical environment, metals supplier Swiss Steel Group is not wavering in its decarbonisation strategy and is working consistently on tracking carbon dioxide (CO2) emissions from its supply chain.
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Air Products South Africa secures renewable power for its ASUs in landmark wheeling agreement
Industrial and specialty gas company Air Products South Africa has concluded a power purchase and wheeling agreement with wind and solar power developer Mulilo Renewable Project Developments, which will result in the companies jointly owning a solar farm in the Northern Cape.
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JUNE 2023
AfCFTA holds promise for SA exports, but implementation roadblocks remain
While the African Continental Free Trade Area (AfCFTA) Agreement presents a significant opportunity to access a larger market for South Africa’s exports and the local manufacturing sector, industry organisation Manufacturing Circle executive director Philippa Rodseth highlights the need for extensive work in terms of implementation.
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APRIL 2023
Ramaphosa reports constructive engagement with steel sector to grow industry
President Cyril Ramaphosa met with business leaders in the steel and engineering industries on April 18 to discuss measures that government, the industry and other social partners will take together to grow the sector and ensure its future sustainability
Competition Commission steel industry inquiry to look into loss of competitiveness
The Competition Commission of South Africa has gazetted the draft terms of reference for a new market inquiry into the South African steel industry, which will examine whether or not there are any features or combination of features in its value chain that impede, distort or restrict competition in the domestic steel industry.
South Africa’s green direct reduced iron export potential highlighted as industry mulls decarbonisation options
Government and the steel industry are considering the potential of positioning South Africa as a global exporter of green hydrogen direct reduced iron (GHDRI) as part of a broader discussion to develop a roadmap for the decarbonisation of the iron and steel value chain.
Sector stays sturdy despite challenges
The stainless steel sector remains steadfast in its resilience, and is even more determined to fight for its well-deserved place in growing the South African economy, says Southern Africa Stainless Steel Development Association (Sassda) executive director Michel Basson.
Steel producer continues to grow manufacturing capacity
Spain-based global stainless-steel producer Acerinox says its global footprint has transformed it into one of the most competitive producers of stainless steels and nickel alloys.
MARCH 2023
Patel highlights challenges faced by South African manufacturers, notes govt efforts
To boost productivity in South Africa, four key business factors need urgent and significant attention, namely increasing energy security, increasing government spending on infrastructure projects, ensuring compliance with local procurement policies and using South Africa’s competitive advantage to the benefit of local businesses, Trade, Industry and Competition Minister Ebrahim Patel has said.
Loadshedding destroying production, growth, jobs in the metals and engineering sector
Companies in the metals and engineering sector have seen production decline by 34.2% over the past year, and production in the sector is estimated to contract by 5.3% this year, industry organisation the Steel and Engineering Industries Federation of Southern Africa (Seifsa) reports.
Saisi says benefit of Commission’s collaboration guidelines remains to be seen
Following the Competition Commission publishing Guidelines on Collaboration last year, the South African Iron and Steel Institute (Saisi) has called on the commission to be proactive in reviewing and adjusting the guidelines to ensure this remains an effective intervention to move the local steel sector into economic recovery.
Stainless steel sector well-positioned to supply African markets, despite loadshedding challenge
The biggest hurdle stainless steel production and fabrication faces to date is loadshedding, with this challenge overriding all previous issues and leading to diminishing staff safety, motivation, productivity and increased living costs, and contributing to a visible decline in apparent consumption during 2022, says industry organisation Southern Africa Stainless Steel Development Association (Sassda) executive director Michel Basson.
JANUARY 2023
Metals, mining industry execs pessimistic about global growth, CRU study finds
More than half (52%) of global commodities business intelligence company CRU’s clients in the metals and mining industries expect global gross domestic product (GDP) to grow by no more than 1% this year, according to its yearly macroeconomic survey of clients, which polled global clients from the metals and mining industries in December.