South African Steel Production Falls To 539,000 Tonnes In April

21 May 2016

South African steel production fell 7.18% year on year (y/y) in April to an estimated 539,000 tonnes, according to the World Steel Association (worldsteel).

This followed a 16.3% rise in South African steel production to 7.6-million tonnes in 2015 compared with a 2.8% decline in global steel production to 1.6228-billion tonnes. In 2015 steel production decreased in all regions except Oceania, which registered a 4.6% gain.

South African steel production fell 7.6% y/y in the first half 2015 to 3.2-million tonnes as the industry battled with electricity supply disruptions and subdued domestic demand. In the first four months of 2016 South African steel production was down 14.2% y/y.

The poor demand was in part due to the government’s multibillion rand infrastructure investment plans failing to gain traction, as investment in steel-intensive railway corridors such as links to Swaziland and the Waterberg coalfields, remain plans, not projects.

In the February 24 2016 budget, the Treasury outlined plans for R865.4bn in public sector infrastructure spending over the next three fiscal years. The largest portion of R291.6bn would be invested in the steel-intensive transport and logistics sector.


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