NEVA MAKGETLA: SA’s mixed fortunes with the global steel value chain
The growing reliance on exports of steel-related products has done little to promote inclusive growth
In the past 20 years SA has developed a new dependency on exports of commodities used in steel production. It showcases the adaptability of SA mining, but also the costs of banking heavily on mineral exports. While bringing in critical export revenues in the short run, it has ultimately contributed to SA’s profound inequality and vulnerability to cycles and structural changes in the world economy.
From 2003 to 2013 sales of steel inputs — iron, manganese and chrome ore, plus ferrous alloys — to China rose from 1% to 10% of SA exports. After world commodity prices crashed in 2011 revenues from these products fell sharply. In constant terms exports of steel inputs peaked at $12bn in 2011, then fell to $6bn in 2015 before recovering to $8bn in 2019. Through the 2010s they fluctuated at 7%-10% of SA’s total export revenues...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.