Rising imports and a fall in domestic output are putting a great deal of strain on South Africa’s stainless steel industry, and Sassda is urging immediate legislative support and innovation to boost the sector and save employment.
The Southern Africa Stainless Steel Development Association (Sassda) cautions that a sharp drop in domestic production and a rise in imported finished steel are posing serious problems for South Africa’s stainless-steel sector. The nation’s steel ecosystem might become unstable, and thousands of jobs could be at risk if important steel mills close.
To safeguard this key industry, Michel Basson, executive director of Sassda, has made an urgent plea for industrial revitalisation and regulatory intervention. Up to 100,000 jobs could be lost as a result of the impending closure of ArcelorMittal’s long-steel factories in KwaZulu-Natal and Gauteng, which would have a significant impact on supply chains and sectors that depend on specialised steel.
South Africa, the country that used to dominate the world in stainless steel manufacturing, has suffered a sharp decline in local output. Two decades ago, local manufacturers accounted for 80% of the national market for stainless-steel hollowware; today, they only satisfy 10% of it. Tens of thousands of livelihoods have already been lost as a result of this downturn.
Growing Imports and Uncertainty in Policy
The influx of low-cost imports from nations like China and India is a major worry for South Africa’s manufacturers. The nation purchased $623 million worth of iron and steel from China in 2023 alone. The threat has only increased because the United States recently imposed a 10% tax on Chinese steel, which could cause excess supply to be diverted to markets like South Africa.
In order to give producers a way forward, Basson emphasises the urgent need for import taxes and more transparent government policies. “Local industries find it challenging to plan or invest when decisive action is lacking,” he says.
Innovation as a Path to Progress
Despite the difficulties, there is hope because of South Africa’s innovative legacy in stainless steel. The nation has led the way since the 1980s in the creation of 3CR12, a corrosion-resistant stainless steel utilised in the construction, automotive, and railroad sectors. In 2025, Sassda hopes to market 3CR12 as an affordable substitute for coated steel, seeing it as a game-changer.
The association emphasises stainless steel’s long-term value and durability as part of its sustainability focus. To improve quality standards and boost global competitiveness, Sassda provides training programs.
A Drive for Economic Recovery and Localisation
To increase local demand, Sassda is actively working with private-sector companies. Instead of sourcing goods from abroad, it has started collaborating with big-box stores like Shoprite and Checkers.
As Basson puts it, “We need a strong ecosystem where domestic manufacturers can grow and lead, as well as stronger localisation and targeted policy support.”
