SOUTH African steel production fell 4.5%
year on year (y/y) in May to an estimated 560,000 tonnes, according to
the World Steel Association.
For all of 2015 there was a 16.3% rise in South African steel production to 7.6-million tonnes, compared with a 2.8% decline in global steel production to 1.6228-billion tonnes. In 2015 steel production decreased in all regions except Oceania, which registered a 4.6% gain.
South African steel production fell by 7.6% y/y in the first half 2015 to 3.2-million tonnes as the industry battled with electricity supply disruptions and subdued domestic demand. In the first five months of 2016, SA steel production was down 12.3% y/y.
The poor demand was in part due to the government’s multibillion rand infrastructure investment plans failing to gain traction, as investment in steel-intensive railway corridors such as links to Swaziland and the Waterberg coalfields, remain plans, not projects.
In the February 24 2016 Budget, the Treasury outlined plans for R865.4bn in public sector infrastructure spending over the next three fiscal years. The largest portion of R291.6bn would be invested in the steel-intensive transport and logistics sector.
For all of 2015 there was a 16.3% rise in South African steel production to 7.6-million tonnes, compared with a 2.8% decline in global steel production to 1.6228-billion tonnes. In 2015 steel production decreased in all regions except Oceania, which registered a 4.6% gain.
South African steel production fell by 7.6% y/y in the first half 2015 to 3.2-million tonnes as the industry battled with electricity supply disruptions and subdued domestic demand. In the first five months of 2016, SA steel production was down 12.3% y/y.
The poor demand was in part due to the government’s multibillion rand infrastructure investment plans failing to gain traction, as investment in steel-intensive railway corridors such as links to Swaziland and the Waterberg coalfields, remain plans, not projects.
In the February 24 2016 Budget, the Treasury outlined plans for R865.4bn in public sector infrastructure spending over the next three fiscal years. The largest portion of R291.6bn would be invested in the steel-intensive transport and logistics sector.
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