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Various organisations expressed their concern about the future of the steel industry in South Africa as the global steel industry reels from the 25% tariffs on steel imports into the US announced by US President Donald Trump and the looming closure of ArcelorMittal.
The Steel and Engineering Industries Federation of Southern Africa (SEIFSA), a national employer federation representing 16 independent employer associations in the metal and engineering industries, is concerned about Trump’s recent utterances against South Africa and its impact on the metals and engineering sector.
“While we will have to get used to the idea that President Trump will continue to use social media and all other channels to give effect to his views and policies, what is undeniable is that by virtue of the sheer economic size of the US, what is said will have an impact on the metals and engineering sector.
“A recent snap internal survey of member companies on the early-stage implications of these developments indicated some alarming warning signs. The US market is a critical export area for highly specialised engineering products from South Africa, and similarly, there is considerable domestic reliance on US-based software systems used in the running of operations.”
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SEIFSA says in a statement that in a world where social media dominates , when something is said often enough that it is believed, and where perception is accepted as reality, business leaders of multinationals and owner-managed local companies have a duty to stand up and allay fears and reassure foreign investors that South Africa remains a safe haven for business.
“We urge government to be deliberate and decisive in cementing its position on policy certainty, key for attracting investment and stimulating economic growth. The government of national unity (GNU) must demonstrate its commitment to stable, consistent policies around land, ownership, transformation and fiscal prudence. This will give investors the confidence to commit to long term projects.
“Consistent, deliberate messaging and actions both domestically and internationally is what is now needed to counter the narrative that we are bordering on a failed state status. Business too has an important role to play, to be the ambassadors of a vision of a reimagined South Africa full of hope and promise.”
In the interim, SEIFSA says, the immediate to mid-term outlook remains far from ideal. “We can, at best, anticipate a frayed relationship with the US. In anticipation of a constrictional cycle over the next six months, businesses must reevaluate their risk and mitigation measures to ensure that notwithstanding the turbulent times ahead, businesses and the sector can ride out the storm coming over the horizon.”
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The Southern Africa Stainless Steel Development Association (Sassda) is also calling for urgent action to protect and grow the country’s stainless steel industry, which is facing severe challenges due to increasing imports of finished stainless steel goods and declining local manufacturing.
Writing in his annual ‘State of the Stainless Steel Nation’ column, Sassda executive director Michel Basson highlighted the urgent need for policy intervention and industrial revitalisation to prevent further job losses and economic stagnation.
He says one of the most pressing concerns for the sector is the potential closure of ArcelorMittal South Africa’s long-products division, which could lead to the loss of up to 100 000 jobs. “The shutdown of this major steel producer would not only affect direct employees but also disrupt supply chains and industries reliant on specialised steel products.
“Without immediate intervention, the consequences for South Africa’s industrial landscape could be devastating, especially since South Africa’s stainless steel industry, once a key player in the global market, has seen a sharp decline in recent years.”
Basson says local manufacturers now produce less than 10% of the country’s stainless steel hollowware local demand, a steep drop from the 80% market share it held two decades ago. “This shift has led to widespread job losses, affecting tens of thousands of workers and their families. If we regain our lost market share, we could potentially create 50 000 sustainable jobs.”
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He points out that one of the major hurdles facing the local stainless steel industry is competition from imported products, particularly from China and India, with South Africa having imported iron and steel worth approximately $623 million from China in 2023.
In addition, he says, the recent imposition on a 10% tariff on Chinese imports into the US market has only heightened the threat of additional imports flooding the South African market in 2025 and beyond.
“In the face of this, the need for a sharper focus on import tariffs has never been more important. However, the decision ultimately lies with the government, and we need clear policy direction, but unfortunately, there has been little movement on the issue.
“This uncertainty has made it difficult for manufacturers to plan for the future, further hindering growth in the sector.”
Basson also points out that the decline of South Africa’s stainless steel manufacturing capacity had a significant impact on employment. The country once supplied over 80% of its own stainless steel hollowware, such as pots, pans and cutlery. Today, that number has dropped to below 10%, with imports dominating the market. He says this shift has resulted in thousands of lost jobs.
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“However, Sassda believes that a renewed focus on domestic production could help reverse this trend. For every person earning a salary, at least ten other people benefit. The impact on the broader economy could be massive.
“Therefore, Sassda is actively working with private sector partners to drive local demand for stainless steel products. The association has engaged major retailers such as Shoprite and Checkers to encourage them to source products from local manufacturers instead of relying on imports.”
Basson also reminds us that South Africa is a champion of stainless steel innovation and has made significant contributions to stainless steel innovation. One of the most notable achievements is the development of 3CR12, a corrosion-resistant stainless steel grade pioneered by the local mill, Columbus Stainless as far back as the 1980s.
“It is a uniquely South African product that has gained international recognition. The material is used in various industries, including rail, transport and construction. The full potential of this cost-effective replacement for coated steel products has not been fully developed. Rectifying this will be a Sassda key focus during 2025.”
Basson emphasises that the stainless steel industry has the potential to contribute significantly to South Africa’s economy if the right measures are taken. “We must push for localisation, ensure policy support and create an environment where local manufacturers can thrive.”
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