focus feature
SA’s Stainless Steel Auto Ambitions Face a Tariff Test Globally, stainless steel is embedded in nearly every vehicle platform, traditional or electric. It appears in exhaust systems (grades 409, 439,
304), fasteners, trims, crash structures, and underbody shields. It’s also found in fuel lines, especially for ethanol-blended fuels, where corrosion is a major concern. In electric vehicles (EVs), stainless steel is used for battery enclosures (301L, 304L), thermal management tubing, and lightweight structural parts. In hydrogen vehicles, it’s critical for high-pressure tanks, fuel cells, and distribution infrastructure. This wide material versatility is matched by another unique trait: stainless steel is 100% recyclable, with a 96% recovery rate. It supports circularity, reduces raw material demand, and aligns with automakers’ long-term sustainability goals. South Africa’s Stainless Steel Footprint in the Auto Sector South Africa has a mature automotive industry, contributing about 5% of GDP. Stainless steel has long been a quiet contributor; feeding into local vehicle assembly, component
exports, and a growing aftermarket supply network. From exhausts to trims, fasteners to fuel system parts, domestic steel processors and component fabricators have historically met OEM needs with strong government support. But recent years have seen that value chain fray. The closure of ArcelorMittal’s Newcastle works has disrupted local production of specialty long steel grades, pushing manufacturers to import key inputs at higher cost. Some OEMs report cost hikes of up to 25% for stainless
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Issue 3 – 2025
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