MATTERS FOR UNLOCKING

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