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SA steel production surges 41.3% y/y in July to 645,000 tons: worldsteel
South African steel production surged 41.3% year on year (y/y) in July to an estimated 645,000 tons after rising 2.3% y/y in June to 530,000 tons, according to the World Steel Association (worldsteel).
The June production was the first year-on-year increase so far in 2015 and seemed to herald a turnaround in the fortunes of the local steel industry, which has been battered by increased steel imports.
South African steel production fell 7.6% y/y in the first half 2015 to 3.2-million tons as the industry battled with electricity supply disruptions and subdued domestic demand.
The poor demand is in part due to the government's multibillion rand infrastructure investment plans failing to gain traction, as investment in steel-intensive railway corridors such as links to Swaziland and the Waterberg coalfields, remain plans, not projects.
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