Steel production down by 15.1%

In the first four months this year South African steel production was down 12.3% y/y and 20.8% lower than the first four months of 2011.

By contrast‚ China's steel industry‚ which is a major importer of South African iron ore‚ grew by 8.4% y/y in the first four months to 258.2m tons‚ while the global steel industry expanded production by 1.9% y/y to 521.30m tons.

Last year South African production fell by 5.7% to only 7.12m tons‚ its lowest level since at least 1980. This contrasts with a 1.2% rise in global steel production last year after a 8.1% jump in 2011.

South African steel production was affected by a fire at ArcelorMittal SA's basic oxygen furnace in Vanderbijlpark.

In mid-April the company said its basic oxygen furnaces had been recommissioned.

The company said the cause of the fire was a malfunctioning sensor and computer software.