South African steel production fell by 11.8% year on year (y/y) to an estimated 500,000 tons in February 2015 after declining by 9.6% y/y to 550,000 tons in January 2015, according to the World Steel Association.
Steel accounts for 4.7% of total manufacturing production and is an important indicator of the overall health of the sector, as it feeds into other manufacturing sectors.
The latest decrease follows a 0.6% drop in 2014 to 7.21-million tons (Mt) and means that Egypt is now Africa’s top producer. Egypt grew its production by 8.7% y/y in the first two months to 1.155Mt compared with SA’s 1.05Mt. In 2014 Egypt only produced 6.485Mt.