Question NW325 to the Minister of Trade and Industry
26 February 2019 - NW325
Ntlangwini, Ms EN to ask the Minister of Trade and Industry
How many tons of steel has the country produced in each of the past 15 years?
Reply:
Over the past 15 years, South Africa’s primary steel industry consisted of the following major flat and long steel producers: ArcelorMittal SA, Evraz Highveld Steel and Vanadium, Cape Gate, Columbus Stainless Steel and SCAW. Small mini-mill players (Agni Steel, Fortune Steel, SA Steel Mills, Cape Town Iron and Steel Works and Veer Steel Mills have started operation in recent years.
The steel industry has been in decline in the last 15 years. Apart from weak demand, a major cause of the decline is the influx of steel imports which adversely affect the profitability and capacity utilization rates of the domestic steel producers. This trend has been aggravated over the years by massive global excess capacity, high production costs and aged plants.
The table and diagram below depict the decline from 2004 where production was 9.4 million tons per annum compared to current production of 6.3 million tons per annum in 2018. Highveld Steel and Vanadium closed in 2015 accounting for a reduction in 1 million tons per annum of steel capacity.
SA’s crude steel production per annum (2004-2018)
|
Year |
SA Crude steel production (tonnes) |
|
2004 |
9 405 568 |
|
2005 |
9 393 123 |
|
2006 |
9 603 324 |
|
2007 |
8 985 805 |
|
2008 |
8 154 958 |
|
2009 |
7 483 932 |
|
2010 |
7 616 762 |
|
2011 |
7 546 489 |
|
2012 |
6 938 400 |
|
2013 |
7 161 900 |
|
2014 |
6 412 200 |
|
2015 |
6 417 100 |
|
2016 |
6 141 300 |
|
2017 |
6 299 200 |
|
2018 |
6 328 300 |
Source: South African Institute of Iron and Steel