SA steel output jumps 24.5% in September to 625,000 tons

South African steel production jumped 24.5% in September to an estimated 625,000 tons after rising by 2.3% y/y in June to 530,000 tons, according to the World Steel Association (worldsteel).

The June production rise was the first y/y increase so far this year and heralded a turnaround in the fortunes of the local steel industry, which has been battered by increased steel imports. The production increase in the first nine months of 2015 is now a large 14.5% y/y despite a poor start to the year.

South African steel production fell by 7.6% y/y in the first half 2015 to 3.2-million tons as the industry battled with electricity supply disruptions and subdued domestic demand.

The poor demand is in part due to the government's multibillion-rand infrastructure investment plans failing to gain traction, as investment in steel-intensive railway corridors such as links to Swaziland and the Waterberg coalfields, remain plans, not projects.