According to Southern Africa Stainless Steel Development Association, South African stainless steel industry grew by just over 1% in 2007 to a total apparent consumption of 197,070 tonnes as against 194 916 tonnes in 2006. SASSDA said that after a strong first half of 2007, growth in apparent consumption has slowed as a result of higher stock and material price levels and nickel price volatility.
The total apparent consumption of 197,070 tons comprised 136,300 tonnes of local supply, plus 40,900 tonnes of primary product imports, taking local material for conversion to 177,200 tonnes, added to which is imports of finished products of 19,870 tonnes.
Total imports, which accounted for 31% of total apparent consumption, slowed during the year with consumer product imports down substantially, suggesting slowing consumer spending. Flat rolled imports decreased by 20% and consumer ware by 23%. Consistently 79% of finished goods imports come from China, India and Taiwan.
Overall exports were flat with primary product at 506,410 tonnes and finished product at 76,870 tonnes. In particular, flat rolled grew by only 1%, automotive products by a remarkable 19% and tubular products by 81%.
Local supply was up by 4.4% from 130,510 tons and essentially represents Columbus Stainless material sold into the domestic market. This increase reflects a shift from primary imports towards local supply in a year of consolidation and flat consumption growth, driven mostly by nickel price volatility.
There has been strong growth in both the transport and capital equipment and general engineering sectors during 2007. The latter was positively influenced by buoyant capital projects activity across a range of sectors including petrochemical, mining and materials handling, food and beverage. The transport sector, especially automotive, was driven by Motor Industry Development Program and strong consumer demand locally and abroad.
Indications are that the overall growth outlook for the local industry remains positive as a result of lower stainless steel price levels and continuing strong demand for stainless steel from capital projects in Southern Africa.
South Africa’s apparent consumption growth of 8.1% between 1991 and 2007 still comfortably outperforms average world growth.
