A plan to support the South African steel industry

The South African government and the steel industry have signed a Steel and Steel Structures Master Plan 1.0 to ensure the industry's short-term survival and long-term growth and sustainability. These measures include the establishment of a R 1.5 billion (US $ 108.8 million) Steel Refining and Marketing Development Fund.

“The key medium-term goal is to bring supply in line with demand: there is a surplus of production capacity for basic long products, but there is a lack of supply for many types of steel required by the automotive, mines and mining industries, as well as yellow metal. the equipment sector, ”says the Master Plan.

“Industry consolidation may be necessary at certain points in the value chain,” he comments. “Proposed for a designated ministerial appointment under the Competition Law that would allow discussion among industry stakeholders to help manage consolidation ... Some consolidation is likely to happen simply as a result of market forces, but this could lead to further de-industrialization and discussion options are preferable. "

In addition to a tax on the export of scrap in South Africa, negotiations have been underway between the government and scrap dealers and consumers on measures that could stimulate local enrichment of scrap while supporting the local recycling industry. “Recyclers must have an incentive to further enrich scrap in the value chain, rather than simply smelting it into ingots or billets for immediate export,” says dtic.

Doron Barnes, chief executive of Scaw Metals and director of the Barnes Group, says that the Hall-Longmore pipe plant, which signed the Masterplan, was planned to be sold in 2014, with parts for export.