Displaying items by tag: Steel industry

TIPS industry studies provide a comprehensive overview of key trends in leading industries in South Africa. They aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.

This study outlines the technological change in the steel industry, looking at emerging technologies and their impact. Other studies focussing on the steel industry map out the value chain, highlighting economic trends and the impact on national outcomes; and analyse the industry’s international trends, looking at global trade and South African trade by country and product.

The steel value chain has been in a long-term downturn since the mid-2000s. Only the mini mills, which produce long steel, and parts of downstream manufacturing have grown. The new public infrastructure build programme, especially for electricity and rail, should support recovery by boosting domestic demand. It may, however, just fuel imports unless accompanied by policies to promote sustainable local procurement. This paper reviews the economic logic behind localisation and experiences in the public infrastructure push in the 2010s. It outlines the main instruments currently in place to support localisation – that is, tariffs, product designations, and support for actual and potential suppliers. An assessment of the costs, benefits and risks of these instruments follows. The final section indicates some next steps.

Business Report - 19 April 2020 by Edward West

Read online at Business Report

Engineering News - 17 April 2020 by Simone Liedtke

Read online at Engineering News

South Africa’s economy was already weak at the start of 2020, coming from a technical recession and the forecasted low growth. The decision to lock down the country as part of the COVID-19 response to protect the health of the South African population has put further pressure on the steel industry. Depending on the length of the lockdown and the rate at which business and consumer confidence return, economic impacts could be less or more severe. This policy brief looks at the possible economic consequences of COVID-19 for South Africa’s steel industry.

Download a copy or read the policy brief online.