Opinion: Transnet strike threatens to be the final nail in the coffin for large bore steel pipe exports to the US
In this opinion piece, Steel Tube Export Association of South Africa (Steasa) CEO Keitumetse Moumakoe writes about the devastating impact the current Transnet strike is expected to have on South Africa’s export of large-bore steel pipes to the US.
Steel is an indispensable and versatile material in municipal bulk water infrastructure, where pipelines traverse many kilometres of remote and demanding terrain to meet the potable water needs of South African communities. By Keitumetse Moumakoe, director, ASTPM used extensively in the construction industry for many years, steel pipes are viewed as a stronger and more flexible alternative to iron- and plasticbased pipes.
In recent months the spotlight has been shone on government’s localisation plans, which aims to reduce imports and build domestic production to supply local and international markets, thus enabling job opportunities. But is localisation a sustainable option to develop SA or will it create further challenges?
The steel Tube Export Association of South Africa took part in the OSIM Zambia on 12-16 August 2019 in Lusaka, Ndola and Kitwe. The mission was well organised and executed through the collaborative effort of the Engineering Technology Group of Export Councils (ETGEC) and the Trade & Invest Africa (TIA) staff heading up the mission.
Macsteel CEO Mike Benfield is confident that the company has a strong legal case against the continued application of an 8% safeguard duty on hot-rolled coil (HRC) and confirms that it is also asking the court for an order granting that it be reimbursed for the duties paid since the extension was confirmed in August last year.
Colin Shaw is the executive director of ASTPM, the association of steel tube and pipe Manufacturers of South Africa. He talks about the industry’s situation in his country as well as the international grade of tubing.
During the Outward Trade and Investment Mission to Cabo Delgado & Maputo Provinces of Mozambique on Mozambique on 25 Nov – 01 Dec 2018, the Steel Tube Export Association of South Africa (STEASA) took part in the trade and investment mission to Mozambique arranged by the dtic and the office of the High Commission in Mozambique.
The Department of Trade and Industry (the dti) has committed to increasing the funding of the export councils in order to drive the transformation agenda in different sectors. The commitment emanated from the export councils meeting hosted by the dti’s Director-General, Mr Lionel October in Pretoria.
Steel industry association the Steel Tube Export Association of South Africa (STEASA) believes that the fast-tracking of the 50 strategic integrated projects and 12 special projects – announced in the Government Gazette this year – will present “tremendous opportunities” for locally manufactured steel tubes and pipes in various sectors.
South Africa and Africa more broadly are attempting to develop their economies through industrialisation and steel forms the basic material of choice for this economic transformation, says the Steel Tube Export Association of South Africa (Steasa) executive director Keitumetse Moumakoe.