state of the stainless steel nation
How can industry stakeholders, including manufacturers and policymakers, work together to ensure the long-term sustainability and competitiveness of the South African stainless steel sector? The concept of public private partnerships is not new and is widely accepted by the private sector. To date, public entities have been slow to take up the relevant opportunities. We have seen how the private sector contributed to the stabilisation of the electricity supply by investing in renewables. We hope that the new government will also see the potential and the willingness of the private sector to contribute to the future of the country. It is a matter of putting the country first and there is an expectation that the newly formed government would be able to facilitate these processes and cooperation. What opportunities for growth do you see in the South African stainless steel sector in 2024 both in terms of new markets and technological advancements? Our sector is diversified, and no single opportunity can be seen as a make or break for the industry. At Sassda we still see potential growth in the structural use of stainless steel including the Eskom transmission towers and rural bridges initiatives. We also see the potential for creating a new fabrication industry flowing from our work in getting beer kegs localised. The resurrection of our hollowware industry is still possible. The short answer to the question is that there is a lot of potential all over the economic landscape. We need a long-term strategy accepted by the government and other organisations and stakeholders to fully unlock a brilliant future.
is the case, the rail and road freight issues in the country will be one of the first things to be addressed. This would be critical since the importance of global logistics cannot be underestimated for the economy and our sector. South Africa does not import large amounts of stainless steel primary material. Perhaps the positive part of the delays in cargo handling at the ports will slow the ingress of imported finished goods. The inputs of experts outside the government sphere, and the partnerships with the private sector will be the key, to improving the rate of imports and exports. This is not only important to our industry but even more so for industries that ship perishable goods. As alluded to, the ports are of national importance and should be addressed by the new government with a compensating level of concern and attention. What effects have imports had on the local stainless steel market, and what measures can be taken to protect and strengthen the domestic industry? How is Sassda working to alleviate this stress point for the local industry? In an ideal world, imported finished goods should create competition for local suppliers. Our members should be globally competitive not only in selected international markets but also locally. That said, South Africa still faces a problem created by imported finished goods made of inferior quality material, at costs that make no financial sense for local suppliers. It remains a focus for the association to put a stop to this, by assisting the Southern African Iron and Steel Institute (SAISI) with stainless steel related information that is intended for the training of customs staff. Sassda also studies and verifies import statistics supplied by SARS and addresses any anomalies identified. Sassda assists the metal desk of the dtic by supplying vendor information when import exemptions on stainless steel product imports are received from local entities, bound by local content regulations. In your opinion, what steps are necessary to stimulate local demand for stainless steel products in South Africa? Please elaborate on the latest work Sassda is doing in various sectors and with various bodies to achieve this stimulus? While we have various initiatives underway aimed at creating jobs and an increase in local consumption tonnage, these projects take time and do not offer a long-term guideline to make our sector a growing and sustainable sector. The Steel Master Plan recognises that the stainless steel sector offers good potential, and that consideration should be given to the development of its sectoral master plan. This is not only a suggestion but a real goal. This would be the only way to get enough exposure and government buy-in to ensure government procurement and increased local content demands for public projects.
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Issue 2 – 2024
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