South Africa’s stainless-steel industry is under pressure owing to increasing imports of finished steel products and declining local manufacturing, says industry body Southern Africa Stainless Steel Development Association (Sassda).

Consequently, Sassda executive director Michel Basson is calling for urgent action to protect and enhance the country’s stainless-steel industry through policy intervention and industrial revitalisation to enhance economic development, which, in turn, reduces unemployment.

The reported closure of leading steel manufacturer ArcelorMittal’s long-steel plants in Gauteng and KwaZulu-Natal, could lead to the loss of 100 000 jobs in the stainless-steel industry and cripple the country’s entire steel industry.

“The shutdown of this major steel producer would not only impact [on] 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,” says Basson.

He stresses that this shutdown is especially “devasting” because South Africa’s stainless-steel industry was once a key player in the global market but has since seen a sharp decline. Local manufacturers now produce less than 10% of the country’s stainless-steel hollowware local demand, a “steep drop” from the 80% market share they held two decades ago. “This shift [has already] led to widespread job losses, impacting tens of thousands of workers and their families.”

Addressing Imports and Policy Challenges

A major challenge 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 about $623-million from China in 2023.

In addition, the recent imposition of a 10% tariff on Chinese imports into the US market has only heightened the threat of additional imports flooding the South African market through 2025 and beyond.

Basson emphasises that, given the current scenario, 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,” he laments.

Steel Innovation

Since the inception of steel mill Columbus Steel in the 1980s, South Africa has been making significant contributions to steel and stainless-steel innovation. One of the most significant innovations includes the development of the corrosion-resistant stainless-steel grade, 3CR12, which is used in construction, rail infrastructure and the automotive sector.

Therefore, Basson says that further developing the potential of the 3CR12 as a cost-effective alternative to coated steel products is Sassda’s key focus for 2025.

The company also promotes the benefits of stainless steel beyond traditional applications, highlighting its sustainability and long-term cost-effectiveness. The association also offers education and training programmes to improve industry standards and ensure that local manufacturers produce high-quality products that can compete on the global stage.

Employment Creation and Economic Development

Sassda believes that a renewed and innovative focus on domestic production could help reverse the industry’s decline.

The organisation is actively working with private-sector partners to drive local demand for stainless-steel products and engages with major retailers such as Shoprite and Checkers to encourage them to source products from local manufacturers, instead of relying on imports.

“We need to push for localisation, ensure policy support and create an environment where local manufacturers can thrive,” he concludes.