Prospects for the steel industry of South Africa

South African steel production is located at a crossroads, in accordance with SCAW METALS Group. The fact is that the industry suffers from the consequences of depression in the market, and local non -competitive prices for raw materials, mainly scrap metal, threaten the future industry. According to reports in the metallurgical sector, a significant reduction in production has been taking place in recent years.

Mr. Afikil Kumalo, Executive Chairman of Scaw Metals Group, said that "local industry is in real misfortune. Due to continuing in low demand, the remaining players in the industry do not invest anything in capital equipment and new technologies." Not only did it increase the production cost of raw materials, but the annual electricity costs increased in addition to inconsistent local demand for foundry and an increase in imports.

Kumalo said that "scrap metal is a key raw materials ingredient in foundry. Only competitive scrap prices have potential to revive the local foundry. We consider the transformation of scrap metal into secondary metal products as a priority in relation to imports."

Another negative point is the lack of qualified personnel in the local industry. Kumalo said that "the new training for foundry production workers was not a priority of local companies, which led to the aging of labor."

Kumalo believes that the only option for the local industry, in which she can stand on her feet, is the help of the Government of South Africa. The Ministry of Trade and Industry and the Department of Economic Development should carry out actions to coordinate efforts to support steel production.