11-06-2025
Basic Iron and Steel Manufacture and Wholesale in South Africa 2025: AMSA to Close Long Steel Business Amidst Industry Challenges
South Africa's crude steel production was down 5% in 2024. ArcelorMittal South Africa's planned closure of its long steel business highlights issues like local demand, government policies favoring mini mills, high logistics, and electricity costs. Environmental regulations, overcapacity, and import competition exacerbate challenges. Amidst these, opportunities exist in 3D printing, robotics, mini mills, and exporting statewide compliant products. Key players include AMSA, Scaw Metals, and Autocast.
Dublin, June 11, 2025 (GLOBE NEWSWIRE) -- The "Manufacture and Wholesale of Basic Iron And Steel in South Africa 2025" report has been added to offering.
This report on the manufacture and wholesale of basic iron and steel, including metal casting, includes information on production, manufacturing performance, capacity, demand and profitability.
The report looks at plans by ArcelorMittal South Africa (AMSA) to shut down its long business and possible solutions, the status and performance of mini mills, and US steel tariffs. The report also includes information on notable players, corporate actions and new capex projects.
There are profiles of 64 companies including steel companies such as AMSA, Scaw Metals, Columbus Stainless, Cape Gate, Macsteel and BSi Steel, and casting companies such as Autocast, Mitak, Wahl Industries, Weir Minerals and Atlantis Foundries.
Introduction
South Africa's crude steel production declined by 5% year on year in 2024.
The local steel industry is at a crossroads, with speciality steel producer AMSA announcing in December 2024 that it would shut its long steel business.
The company has blamed a lack of local demand, the government's scrap metal policy which favours competing mini mills, and escalating logistics and electricity tariffs, which have made it unsustainable.
Industry challenges include significant overcapacity, dumping and decarbonisation.
Metal casting has faced similar challenges, and the number of companies involved in the sector has contracted significantly in recent years.
Trends
A number of countries have added tariffs recently to protect their steel sectors.
Decarbonisation of steel.
Foundries are investing in technology solutions like 3D printing and robotics to become more competitive.
Imports of steel flats are growing.
Steel demand locally and globally remains low.
The growth of local mini mills, with a number also expanding production recently.
Opportunities
3D printing and robotics in metal casting to improve productivity.
Opening a mini mill, given the supportive policies for scrap metal and IDC funding available.
Some steel products have a local content threshold of 100% (the product must be made entirely of local steel) designated for procurement by state entities.
The African Continental Free Trade Area agreement.
The introduction of export support and support for downstream producers to export to the rest of Africa.
Challenges
AMSA's imminent closure threatens to reduce the country's steel competitiveness.
Dumping of steel by other countries has created unfair competition with cheap imports.
Environmental regulation affects steel producers and foundries.
Imports are rising.
Input costs have grown, particularly for logistics and electricity.
Large producers like AMSA say the state's scrap metal policies have created unfair benefits for mini mills.
Low steel demand, in part due to delayed infrastructure projects, means that there is significant overcapacity.
Poor logistics have created additional costs for producers.
Shortage of skilled employees.
Steel tariffs are lower than in other steel-producing countries.
The EU's Carbon Border Adjustment Mechanism may reduce exports to Europe.
Outlook
Steel producers say the outlook for the basic iron and steel production industry is grim as local demand is expected to remain low as the economy barely grows.
The industry is facing increased competition from cheap imports and challenges such as high electricity and logistics charges.
Some experts have said that AMSA's R1.7bn loan from the IDC will just delay the inevitable closure of the business.
AMSA expects no real improvement in the steel market in 2025.
With an increase in demand unlikely, the solution to the crisis facing long steel producers is to increase exports or reduce capacity.
Key Topics Covered:
1. INTRODUCTION2. DESCRIPTION OF THE INDUSTRY2.1. Industry Value Chain2.2. Geographic Position2.3. Size of the Industry3. LOCAL3.1. State of the Industry3.2. Key Trends3.3. Key Issues3.4. Notable Players3.5. Trade3.6. Corporate Actions3.7. Regulations3.8. Enterprise Development and Social Development4. AFRICA5. INTERNATIONAL6. INFLUENCING FACTORS6.1. Economic Environment6.2. Environmental Issues6.3. Technology, R&D, Innovation6.4. Government Support6.5. Input Costs6.6. Performance of End User Industries7. COMPETITIVE ENVIRONMENT7.1. Competit7.2. Ownership Structure of the Industry7.3. Barriers to Entry8. INDUSTRY SUMMARY9. OUTLOOK10. INDUSTRY ASSOCIATIONS
COMPANY PROFILES - IRON AND STEEL
A Holman Trading Company (Pty) Ltd
Aeroton Steel (Pty) Ltd
Africa Pipe Industries (Pty) Ltd
Allied Steelrode (Pty) Ltd
Andrew Mentis (Pty) Ltd
Arcelormittal South Africa Ltd
Argent Industrial Ltd
Augusta Steel (Pty) Ltd
Barnes Reinforcing Industries (Pty) Ltd
Barnes Tubing Industries (Pty) Ltd
Bsi Steel (Pty) Ltd
Cape Gate (Pty) Ltd
Capital Africa Steel (Pty) Ltd
Clotan Steel (Pty) Ltd
Coega Steels (Pty) Ltd
Columbus Stainless (Pty) Ltd
Consolidated Wire Industries (Pty) Ltd
Duferco Steel Processing (Pty) Ltd
Fischer South Africa Facilities (Pty) Ltd
Garsin Steel Tube And Pipe (Pty) Ltd
Hall Longmore Holdings (Pty) Ltd
Hudaco Trading (Pty) Ltd
Jaguar Metals (Pty) Ltd
Kamal Cape Town Iron And Steel Company (Pty) Ltd
Macdonald Steel Sa (Pty) Ltd
Macsteel Service Centres Sa (Pty) Ltd
Meshco (Pty) Ltd
N J R Steel Holdings (Pty) Ltd
Neven Matthews (Pty) Ltd
Pro Roof Steel And Tube (Pty) Ltd
Rand York Minerals (Pty) Ltd
Richards Bay Titanium (Pty) Ltd
Sa Metal Group (Pty) Ltd
Scaw South Africa (Pty) Ltd
Shaurya Steel (Pty) Ltd
Stewarts And Lloyds Holdings (Pty) Ltd
Tradecore Steel (Pty) Ltd
Unica Iron And Steel (Pty) Ltd
United Heavy Industries (Pty) Ltd
Veer Steel Mills (Pty) Ltd
COMPANY PROFILES - CASTING
Akhani 3D (Pty) Ltd
Arcelormittal South Africa Ltd
Atlantis Foundries (Pty) Ltd
Autocast South Africa (Pty) Ltd
Bosal Afrika (Pty) Ltd
Cast Products South Africa (Pty) Ltd
Ceracast (Pty) Ltd
Copalcor (Pty) Ltd
Elmacast (Pty) Ltd
Get Metal Group (Pty) Ltd
Hudaco Trading (Pty) Ltd
Kimberley Engineering Works (Pty) Ltd
M I S Engineering (Pty) Ltd
Me Elecmetal Prima Manufacturing (Pty) Ltd
Natal Iron And Brass Foundry Cc
Non-Ferrous Metal Works (S A) (Pty) Ltd
Pressure Die Castings (Pty) Ltd
Prevail Engineering (Pty) Ltd
Rely Precision Castings (Pty) Ltd
Rustenburg Engineering And Foundry (Pty) Ltd
South African Roll Company (Pty) Ltd
Thomas Foundry (Pty) Ltd
Thos Begbie And Company (Pty) Ltd
Transnet Soc Ltd
Vereeniging Foundries (Pty) Ltd
Viking Foundry (Pty) Ltd
Wahl Industries Cc
Weir Minerals Africa (Pty) Ltd
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