Government Finalizes Revised Steel Master Plan

South Africa’s Department of Trade, Industry and Competition is finalizing a revised Steel Master Plan intended to protect the country’s steel market and strengthen the local industry.

Trade, Industry and Competition Minister Parks Tau said the updated strategy would help the sector make strategic decisions about production and metal recycling, while addressing systemic pressures affecting its operations.

The local steel industry faces challenges including low-cost imports, damage to infrastructure and supply-chain disruptions.

The revised plan is also intended to improve production and recycling efficiencies and tackle infrastructure theft and vandalism, which can disrupt industrial activity and increase costs.

Tau said the government was pursuing a range of measures, including regulations governing scrap-metal exports and changes to steel tariffs and preferential pricing.

He described these as elements of a broader effort to maintain competitiveness and preserve domestic capability.

“There’s work that we’re doing with regard to regulations around scrap exports. There’s work that we’re doing on the tariff side with regard to preferential pricing systems for steel.

So it’s different elements of the work that we’re doing that simply seek to ensure that we remain competitive and have capability in the country.”

The plan comes as the industry faces pressure from imported steel and constraints on infrastructure and supply chains. These conditions can affect local producers’ ability to operate, plan production and compete in the domestic market.

By setting out measures on production, recycling and trade, the revised plan is expected to guide decisions across the steel value chain.

The department’s approach includes addressing the availability and use of scrap metal, an important input for recycling, while seeking to ensure that local producers can access steel under competitive conditions.

The government is also focusing on theft and vandalism affecting infrastructure.

Damage to public and industrial assets can interrupt transport and supply networks, affecting businesses that depend on reliable infrastructure to move materials and products.

Tau’s comments indicate that the strategy will combine several policy tools rather than rely on a single intervention.

These include export regulation, tariff measures and pricing arrangements, alongside efforts to improve efficiency and address criminal activity that harms infrastructure.

The Department of Trade, Industry and Competition is still finalizing the document, and further details of the revised plan were not included in the information provided.

Its eventual measures will shape how government and industry respond to the pressures facing domestic steel production and recycling.

The department’s stated objective is to keep South Africa competitive while maintaining the capability to produce steel locally.

The revised Steel Master Plan is intended to support that goal as manufacturers and related businesses contend with imports, operational disruptions and infrastructure risks.

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