CONTEXT IN WHICH THE MASTERPLAN IS IMPLEMENTED Key challenges faced by the sector/ value chain
Reduced domestic and global competitiveness exacerbated by steep increase in production costs (raw materials, electricity, logistics)
Unstable energy supply and escalating energy costs
Transportation & logistics: unreliable and cost of rail transport infrastructure, heavy reliance on Road transport
Delays infrastructure rollout programme depressed demand
Increased imports and the escalation of illicit/illegal trade (Asian and global over-capacity and over-production resulting in pressure on both primary steel value added products)
Increased deployment of trade remedy measures globally – negatively impacting SA competitiveness in the export markets
Capacity under utilisation – plant closures and job losses
Climate Change mitigation – export markets gearing for changes – local industry is very carbon intensive
COVID 19 impact and vaccine reluctance: impact on industry work force due to vaccine reluctance and increase number of infections.
Events of July 2021
Recent wage negotiation that lead to strikes actions 6
