state of the stainless steel nation
the structural profiles to the required standards. The announcement of the closure of the AMSA long products, put a damper on this strategy, since these plants were identified to produce structural profiles. Sassda therefore participated in industry discussions and supported the work and efforts done by ISF, SAISI and BUSA amongst others to be able to postpone or delay the closure date for 6 months. What is Sassda’s stance on the proposed closure of ArcelorMittal’s long steel operations in South Africa? AMSA is a significant supplier of long steel products to the South African manufacturing industry supplying approximately 450 000 tons a year of product that cannot be supplied by the local mini mills due to capacity, capability, and quality constraints. The resulting steel shortages will lead to the almost immediate closure of industries that are reliant on the supply of long steel from AMSA. Automotive steel components are typically safety critical. The automotive industry bodies advised that any change in the supply chain requires substantial time for approval
promotion of stainless steel use with an emphasis adding local value which will create tonnage and sustainable jobs. Localisation or import replacement of stainless steel products with high labour intensity such as the local production of beer kegs and cooking products would be able to create jobs with an increase of locally used tonnage of around 250 000 tonnes as a target. The strategy of driving higher tonnage in the local manufacture of electrical transmission towers and rural bridge infrastructure in the utility ferritic grades such as 3CR12 for corrosive and other sensitive regions of deployment. These industry initiatives to create more locally converted tonnage are currently under threat with the Arcelor Mittal South Africa (AMSA) announcement regarding the closure of its long product facilities. The plants earmarked for closure were set to produce many of the profiles and products identified for these projects. This means that 2024 will once again be a tough year for the local stainless steel industry. Most of our fabricating members work in carbon steel as well and the developments regarding AMSA would take its toll on our current industry activities. What are some of the key projects flowing from the Steel Master Plan that Sassda is working on? • Hollowware: Sassda and its partners in the demand side structures in the Steel Master Plan have completed an investigation and a report on the local manufacturing capacity for hollowware. This will now be presented to major retailers to gain possible commitment for potential demand. It has also been noted that the enforcement of SABS standards can be beneficial to local producers by restricting the imports of sub-standard goods. As such, Sassda is currently contemplating a repeat of the investigation done a decade ago regarding the quality of hollowware available from retailers in South Africa. The study entails the purchase of a range of stainless steel items available in retail stores. This will be followed by tests for material quality, against the SABS Standard 998 which specifies the technical aspects of acceptable hollowware. The results of such a study would potentially highlight serious discrepancies in quality and identify possible dumping practices. It would also have the effect of encouraging the public to purchase local stainless s teel products. • Structural profiles: We remain committed to getting 3CR12 included in the national standards for electrical transmission towers and rural bridges. This will open additional markets for structural profiles and possibly exports. Whereas kegs and hollowware can be regarded as job creators, structural use will be tonnage generators. However, this strategy was largely dependent on the local carbon steel industry’s capacity to roll form
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Issue 1 – 2024
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