https://www.engineeringnews.co.za
Africa|Automotive|Business|Concrete|Projects|rail|Stainless Steel|Steel|Products
Africa|Automotive|Business|Concrete|Projects|rail|Stainless Steel|Steel|Products
africa|automotive|business|concrete|projects|rail|stainless-steel|steel|products

Stainless steel industry shows brighter future

LOOKING UP
South Africa's economy is expected to rebound in 2021 and 2022 after the dire impact of Covid-19 last year

LOOKING UP South Africa's economy is expected to rebound in 2021 and 2022 after the dire impact of Covid-19 last year

28th May 2021

     

Font size: - +

The stainless steel market is still under pressure following years of economic decline in South Africa’s economy. This was exacerbated by Covid-19 and the measures that government imposed to reduce infections, says Africa-based stainless steel mill Columbus Stainless. After the Level 4 lockdown restrictions, increased economic activity was evident and the stainless steel industry benefitted from this.

Apparent market consumption of stainless steel turned the corner at the end of 2020 and markets have seen an increase of close to 40% in the first two months of 2021. Apparent consumption is now close to 10 500 t each month following years where there was a double digit decline in apparent consumption. There was a 19% decline from 2019 to 2020 and the industry suffered the consequences.

International stainless steel consumption was reduced by 2.5% in 2020 and was well below the reduction experienced in the South African market, where one of the stainless steel merchants unfortunately closed down after completion of an unsuccessful business rescue process.

Imports have also increased on the back of improved demand as a result of better business condition in 2021 and the first three months saw 4 700 t of primary products imported into the country.

Locally produced material increased as well and the merchant sector experienced increased volumes with active restocking programmes from players in this sector. Unfortunately, not many new projects are being announced amid the uncertainties at play. These include economic growth prospects, political stability as well as possible reactions and policies related to Covid-19.

South Africa's economyis expected to rebound in 2021 and 2022 after the dire impact of Covid-19 last year. The sharp gross domestic product contraction in 2020, owing to enforced shutdowns and the resulting absence ofeconomicactivity, resulted in a high expected growth rate of 3.3% in 2021. Real growth may be as low as 1.5% as a pessimistic view and both these are well below the predicted growth rates for other developing economies. Stainless steel activity is expected to follow these rates and there are hopes for the more optimistic rate of above 3%.

There are concrete plans to make this possible and the establishment of the Steel Master Plan could be the tool and vehicle to create real growth through the complete value chain. Industry has seen some real developments such as the resumption of Passenger Rail Agency of South Africa passenger rail cars being built from stainless steel.

Localisation and product designation efforts from the government should also find more traction this year and increased locally produced material demand is expected. It is also expected that the very active automotive sector in South Africa will rebound on the back of international demand the logistical problems between Asia and the West.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

Comments

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (23/02/2024)
23rd February 2024 By: Martin Creamer
Magazine round up | 23 February 2024
Magazine round up | 23 February 2024
23rd February 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:24.287 24.393s - 273pq - 2rq
Subscribe Now