Steel prices have fallen fast in the past few months, indicating difficult global economic conditions ahead and lower margins for local producers struggling against a range of issues such as the devastating impact of the ongoing load shedding.
In response to Business Report questions about the implications of falling steel prices, the Steel and Engineering Industries Federation of SA (Seifsa) said while it did not bode well for the sustainability of local producers, the low prices also indicated low consumption which was, in turn, a function of the global economy.
Factors intensifying global headwinds include a possible recession in the US, inflation which, while it had started levelling off, was stubbornly high, and tighter financing conditions.
“Domestically, the issues of the energy crisis, which has major implications for steel producers,…
