Posted: 11 February 2025
The Southern Africa Stainless Steel Development Association (Sassda) is calling for urgent action to protect and grow the country's stainless steel industry, which is facing severe challenges due to increasing imports of finished stainless steel goods and declining local manufacturing. Writing in his annual ‘State of the Stainless Steel Nation’ column, Sassda Executive Director Michel Basson highlighted the urgent need for policy intervention and industrial revitalisation to prevent further job losses and economic stagnation.
One of the most pressing concerns for the sector is the potential closure of ArcelorMittal South Africa's long-products division, which could lead to the loss of up to 100 000 jobs. “The shutdown of this major steel producer would not only impact direct employees but also disrupt supply chains and industries reliant on specialised steel products. Without immediate intervention, the consequences for South Africa’s industrial landscape could be devastating,” said Basson. This is especially because South Africa’s stainless steel industry, once a key player in the global market, has seen a sharp decline in recent years. Local manufacturers now produce less than 10% of the country’s stainless steel hollowware local demand, a steep drop from the 80% market share they held two decades ago. This shift has led to widespread job losses, impacting tens of thousands of workers and their families. “If we regain our lost market share, we could potentially create 50 000 sustainable jobs,” Basson emphasised.
Tackling Imports and Policy Challenges
One of the major hurdles facing the local stainless steel industry is competition from imported products, particularly from China and India, with South Africa having imported iron and steel worth approximately $623 million from China in the 2023. In addition, the recent imposition on a 10% tariff on Chinese imports into the US market has only heightened the threat of additional imports flooding the South African market in 2025 and beyond.
“In the face of this, the need for a sharper focus on import tariffs has never been more important. However, the decision ultimately lies with the government, and we need clear policy direction but unfortunately there has been little movement on the issue. This uncertainty has made it difficult for manufacturers to plan for the future, further hindering growth in the sector,” laments Basson.
Job Creation and Economic Impact
The decline of South Africa’s stainless steel manufacturing capacity has had a significant impact on employment. The country once supplied over 80% of its own stainless steel hollowware - such as pots, pans, and cutlery. Today, that number has dropped to below 10%, with imports dominating the market. This shift has resulted in thousands of lost jobs.
However, Sassda believes that a renewed focus on domestic production could help reverse this trend. “For every person earning a salary, at least ten other people benefit. The impact on the broader economy could be massive,” Basson emphasised.
In line with this, Sassda is actively working with private sector partners to drive local demand for stainless steel products. The association has engaged major retailers such as Shoprite and Checkers to encourage them to source products from local manufacturers instead of relying on imports.
Innovation in Stainless Steel
South Africa is also a champion of stainless steel innovation and has made significant contributions to stainless steel innovation. One of the most notable achievements is the development of 3CR12, a corrosion-resistant stainless steel grade pioneered by the local mill, Columbus Stainless as far back as the 1980s. “It’s a uniquely South African product that has gained international recognition,” Basson said. The material is used in various industries, including rail, transport, and construction. The full potential of this cost-effective replacement for coated steel products has not been fully developed. Rectifying this will be a Sassda key focus during 2025.
In addition, Sassda promotes the benefits of stainless steel beyond traditional applications, highlighting its sustainability and long-term cost-effectiveness. The association also offers training programs to improve industry standards and ensure that local manufacturers produce high-quality products that can compete on the global stage. Education and awareness around the proper use of stainless steel to maximise its unbeatable Life Cycling Cost advantages remain another core focus for the Association. During 2024 Sassda invested around R500 000 in education of the various levels of the industry value chain.
A Call to Action
Basson reiterated that the stainless steel industry has the potential to contribute significantly to South Africa’s economy if the right measures are taken. “We need to push for localisation, ensure policy support, and create an environment where local manufacturers can thrive,” he said.