South African steel production rises 2.6% in 2017 to 6.3-million tonnes

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South African steel production rises 2.6% in 2017 to 6.3-million tonnes

9:38 CAT | 25 Jan 2018

File photo: Reuters

South African steel production rose by 2.6% in 2017 to an estimated 6.301-million tonnes after falling by 4.2% in 2016, according to the World Steel Association.

This compared with a 5.3% rise in global steel production to 1.6912-billion tonnes. Crude steel production increased in all regions in 2017 except in the Commonwealth of Independent States, where it was stable.

The largest producer was China, which ramped up production by 5.7% to 831.7-million tonnes. It raised its share of global production to 49.2% in 2017 from 49% in 2016. In some months of 2017 its share exceeded 50%.

After South African steel production fell by 7.6% year on year in the first half of 2015 to 3.2-million tonnes, as the industry battled with electricity-supply disruptions and subdued domestic demand, it has been on a recovery path. This was evident in the second half of 2017 when production in December surged 20.9% year on year.

The private sector has invested heavily in the steel-intensive non-residential construction sector with reports of shortages of steel reinforcing bars.

The real value of non-residential buildings completed soared by 38.9% year on year in the first 11 months of 2017 as there were large increases in completions of retail, office and banking space, while the centre of Sandton currently resembles one large construction site, with several large buildings nearing completion.

Source: Business Live