Steel industry under severe strain
US president Donald Trump’s announcement of punitive tariffs on steel and aluminium imports has added to the burden the SA steel industry is already bearing
The SA steel industry is undergoing huge structural changes, brought about by factors that include the 2008 global financial crisis, China’s cheap steel exports to the rest of the world, a lack of major infrastructure spending in SA since the 2010 soccer World Cup and empowerment regulations.In addition, ArcelorMittal SA, the country’s largest steel producer, with about 70% of market share, is haemorrhaging billions of rand. And Evraz Highveld Steel & Vanadium, once the second-largest SA steel producer, is bankrupt.News just in adds mightily to these woes. US president Donald Trump put world markets in a spin by announcing punitive tariffs on steel and aluminium imports.He says these industries in the US have been "devastated by the unfairness of other countries" and by neglect by the US government itself.Trump was expected to announce details about such tariffs this week.In response, the world’s biggest steel producers, China and the EU, are threatening retaliatory action. The anno...
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