R/€ = 15.33Change: -0.02
R/$ = 14.44Change: -0.01
Au 1068.65 $/ozChange: 2.50
Pt 841.50 $/ozChange: 3.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Nov 08, 2010

Steel price report to be presented to Cabinet ‘soon'

Africa|Exploration|Mining|rail|Resources|Africa|Manufacturing|Steel|Iron Ore|Iron-ore
Africa|Exploration|Mining|rail|Resources|Africa|Manufacturing|Steel|Iron Ore|Iron-ore
© Reuse this

A report detailing possible policy actions that could be taken to ensure both a viable steel manufacturing industry in South Africa, as well as competitive domestic steel pricing is nearing completion and will be submitted to Cabinet soon, Trade and Industry Minister Dr Rob Davies has confirmed.

The report, which was precipitated by the high-profile corporate battle between Kumba Iron Ore (Kumba) and ArcelorMittal South Africa (Mittal) over iron-ore pricing, was close to being finalised by an interdepartmental task team, comprising officials from the departments of Trade and Industry, Economic Development and Mineral Resources.

Speaking on the sidelines of a function to launch a new R20-billion tax incentive for manufacturing investors, Davies said that government remained "determined" to ensure that the local steel industry continued to receive "concessional" iron-ore prices, but that those prices be "passed on" in the form of a competitive domestic steel price.

He said that government would not be diverted from pursuing those two principles, no matter what "internal arrangements and agreements" existed between participants in the iron-ore mining and steelmaking sectors.

"Of course, we want to work with the players in those particular sectors to ensure maximum cooperation. But we are not going to let this matter go, because the steel price is very important."

Referring to an independent survey of downstream steel consumers, Davies noted that 20% of the downstream users canvassed indicated that they would increase employment by 10%, or more, should there be a 10% reduction in the steel price.

Should there be a 20% reduction, "something like 40% of downstream steel users would increase employment by 10%, or more".

"So this is a significant issue . . . for the manufacturing sector, which we want to move forward on."

Kumba cancelled the cost-plus 3% pricing agreement with Mittal as from March 1, 2010, owing to the steel group's failure to convert its Sishen mineral rights. These rights are now the subject of legal action taken by Kumba against the Department of Mineral Resources and Imperial Crown Trading - Kumba alleges that the exploration rights were obtained irregularly and fraudulently.

Subsequently, the two companies, which are pursuing arbitration over the matter, agreed upon an interim arrangement, whereby iron-ore is being supplied to the Saldanha works at a fixed price of $50/t free-on-rail and a fixed price of $70/t, for both lump and fine material, supplied to Mittal's inland facilities.

The interim arrangement is set to endure until July 31, 2011.


Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
Other Metals News
ArcelorMittal's South African unit priced its $320-million cash call at more than a 50% premium on Tuesday as it battles falling steel demand and rising costs, sending its shares soaring. "They're sending the signal that someone with deep pockets is backing them and...
South Africa’s crude steel production increased by 23.8% year-on-year to an estimated 650 000 t in October. Global crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was down 3.1% year-on-year to 134-million tons.
Students from the Southern African Institute of Steel Construction (SAISC) School of Draughting at Genrec Engineering, in Wadeville, Germiston, have excelled in the recently held on October 2nd  University of Johannesburg Department of Civil Engineering Technology’s...
Latest News
Construction company Murray & Roberts (M&R) on Tuesday said board members Mahlape Sello and Royden Vice would be excluded from any discussion and documents relating to the investigation of the October collapse of a support structure of a pedestrian bridge being built...
The Nuclear Industry Association of South Africa (Niasa) is not sitting by idly while National Treasury and the Department of Energy mull over the various options for the country’s controversial 9 600 MW nuclear build programme. While Energy Minister Tina...
While a resurgence in manufacturing in Africa has been popularly touted as the silver bullet that will accelerate the continent’s economic growth prospects, The Economist management editor and columnist Adrian Wooldridge has suggested that Africa’s industrial...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96