Briefing note: A strategic response to the crisis in the steel industry

1 The extent of the crisis The crisis in the South African steel industry emerges in a number of ways. [...] Despite the fall in unit price, the value of South African imports of all iron and steel products rose from US$206 million in 2010 to US$474 million in 2015. [...] The share of iron and steel products in South Africa’s total imports from China climbed from 1% in 2010 to 3% in 2015. [...] In sum, the crisis in the steel and ferro alloys industry in South Africa is primarily due to slower growth in China, which has both led to a glut of basic steel internationally and ended the commodity boom. [...] That in turn points to the need to review procurement procedures to give local producers More time to develop capacity for the required products and The chance to match the prices of imports.