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Viewing report
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South Africas Steel Industry 2010
Creamer Media, Nov 2010, Pages: 27
The financial crisis that began in 2008 caused the global economy to continue to weaken in the first half of 2009, most notably in industrialised countries. Indications of a recovery appeared in the second half of the year, owing in part to economic stimulus measures. However, global crude steel production was down for the second year running.
Steel production in the 66 countries that report to the World Steel Association (worldsteel) amounted to 1,22-billion tons in 2009, an 8% decline on the 2008 figure and the lowest level since 2005. This was the result of the worldwide economic slowdown.
In 2009, South Africa was ranked nineteenth by worldsteel in terms of global crude steel production. The country is also the largest steel producer in Africa, accounting for more than half the continent’s total crude steel production. South Africa boasts five primary carbon steel producers, namely ArcelorMittal South Africa, Evraz Highveld Steel & Vanadium, Scaw Metals, Cape Gate and Cape Town Iron & Steel Works. The country has one primary stainless steel producer, Columbus Stainless.
Like other sectors of the economy, the steelmaking industry is recovering from the worldwide crisis of 2008 and 2009, but the greatest threat to the industry’s recovery is the proposed increase of more than 30% a year for the next three years in the electricity price. This will not only have a significant impact on the cost of producing steel, but will also affect the production costs of manufacturers of fabricated steel products and the cash flow and consumption of the end-user.
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