SA steel production rose 3.1% year on year in
November to an estimated 498,000 tons after jumping 13.8% in October to
534,000 tons, according to the World Steel Association (worldsteel).
The June rise of 6.9% was the first annual increase this year and followed a 16.3% rise in steel production to 7.6-million tons for the whole of 2015 compared with a 2.8% decline in global steel production to 1.6228-billion tons. In 2015 steel production decreased in all regions except Oceania, which registered a 4.6% gain.
In the first 11 months of 2016 SA steel production was down 4.5% compared with a 5.9% decline for Africa and a 0.4% increase for global steel production. In November global crude steel production rose an annual 5.0% to 132.4-million tons, of which China accounted for 66.3-million tons, which was a 5% increase.
Poor SA 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.
The government’s economic cluster said in early September 2016 that steps had been taken to accelerate implementation of the Nine-Point Plan. The cluster was at an advanced stage in preparing for the implementation of 40 high-impact investment projects.
In the budget this February, the Treasury outlined plans for R865.4bn in public sector infrastructure spending over the next three fiscal years. The largest portion of R291.6bn will be invested in the steel-intensive transport and logistics sector.
By contrast the private sector has invested heavily in the steel-intensive nonresidential construction sector with reports of shortages of steel reinforcing bars. The real value of nonresidential buildings completed soared by an annual 21.6% in the nine months of 2016 as there were large increases in completions of retail, office and banking space in KwaZulu-Natal, while the centre of Sandton currently resembles one big construction site with several large buildings being built.
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The June rise of 6.9% was the first annual increase this year and followed a 16.3% rise in steel production to 7.6-million tons for the whole of 2015 compared with a 2.8% decline in global steel production to 1.6228-billion tons. In 2015 steel production decreased in all regions except Oceania, which registered a 4.6% gain.
In the first 11 months of 2016 SA steel production was down 4.5% compared with a 5.9% decline for Africa and a 0.4% increase for global steel production. In November global crude steel production rose an annual 5.0% to 132.4-million tons, of which China accounted for 66.3-million tons, which was a 5% increase.
Poor SA 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.
The government’s economic cluster said in early September 2016 that steps had been taken to accelerate implementation of the Nine-Point Plan. The cluster was at an advanced stage in preparing for the implementation of 40 high-impact investment projects.
In the budget this February, the Treasury outlined plans for R865.4bn in public sector infrastructure spending over the next three fiscal years. The largest portion of R291.6bn will be invested in the steel-intensive transport and logistics sector.
By contrast the private sector has invested heavily in the steel-intensive nonresidential construction sector with reports of shortages of steel reinforcing bars. The real value of nonresidential buildings completed soared by an annual 21.6% in the nine months of 2016 as there were large increases in completions of retail, office and banking space in KwaZulu-Natal, while the centre of Sandton currently resembles one big construction site with several large buildings being built.
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