Global steel forum calls for market-based reforms amid oversupply

SOUTH Africa and other member countries of the Global Forum on Steel Excess Capacity (GFSEC) have agreed to adopt market-based principles to tackle the persistent global oversupply of steel, which continues to pressure domestic industries through a surge of cheap imports.

- TAWANDA KAROMBO

Ministers from steel-producing countries under the GFSEC met in Gqeberha on Friday and resolved to recognise "the importance of steel supply chains and the need for them to operate based on market" principles.

Mervyn Naidoo, CEO of Actom and new president of the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), said last week that the steel industry in South Africa will "advocate for procurement models and investment strategies that favour localisation, skills development and longterm" sustainability.

South Africa's steel manufacturing industry remains a key manufacturing cog and driver of infrastructure development, despite the numerous challenges the sector has faced with rising imports and logistics challenges.

While the government has been engaging steel producers such as ArcelorMittal South Africa (Amsa), the global ministers that attended the meeting have committed to joint efforts to address policies and practices that are threatening the steel industry globally.