Domestically produced steel in South Africa plays a crucial role in the country’s economy. So, how is the industry doing?
In this article, we’ll present the current statistics in the light of past figures as well as future predictions. All the figures for the production of steel in South Africa are as of June 2022 and have been quoted from Trading Economics. Keep reading to get up to speed.
Statistics in Steel
Over the past 40 years, from 1980 through to 2020, the average production of steel in South Africa was 666 960 tonnes.
Steel production reached an all-time high in August 2008 at 885 000 tonnes. The record low was seen during the early stages of the COVID-19 pandemic with an output of just 3 000 tonnes seen in April 2020.
As was the case with many industries, 2020 was not a good year for steel in South Africa. Production decreased from 325 600 tonnes in November to 292 300 tonnes in December.
What Lies Ahead?
Despite the strain on the industry due to the coronavirus, and various other factors, we should see an increase in steel production in the coming months. According to expert predictions, we can expect steel production to reach 420 000 tonnes towards the end of 2022. The long-term projected trend for 2022 is forecast at 530 000 tonnes.
While still not meeting the average figures of the past years, we can look forward with positivity, seeking innovative ways to boost production and help the industry to get back on its feet.
The production of steel in South Africa still has a long way to go. However, that does not make it any lease relevant as a commodity. Steel is used extensively throughout so many industries, its impact on the country’s economy is significant indeed!
Steelmor is committed to contributing positively to South Africa’s steel industry. Take a look at our list of services here.