Demand for carbon steel profiles surges in South Africa, with infrastructure and energy projects the key drivers

As the South African government accelerates infrastructure development and renewable energy projects, demand for carbon steel profiles in the domestic market is growing significantly. Industry analysts point out that the expansion of investment in the construction, mining and energy sectors is a key factor driving demand for carbon steel profiles.

Demand driven by infrastructure and industrialization

The South African government’s recently announced “Economic Reconstruction and Recovery Plan” has seen a number of large-scale infrastructure projects (e.g., roads, bridges, port upgrades) enter the implementation phase, which has significantly boosted the purchasing of structural sections such as H-beams and I-beams. In addition, the advancement of industrialization, especially the expansion of automobile manufacturing and machining industries, further stimulated the market demand for carbon steel profiles.

Energy Transition Drives Steel Applications

The rapid development of renewable energy industry in South Africa, such as solar power plants and wind farms, has opened up new markets for carbon steel profiles. The construction of facilities such as photovoltaic mounts and transmission towers relies on high-strength, corrosion-resistant carbon steel products. According to the South African Iron and Steel Institute (SAISI), orders for profiles for energy projects increased by 22% year-on-year in the first half of 2023.

Supply-side challenges and localization opportunities

Despite strong demand, South Africa still faces dependence on imports for some carbon steel sections (mainly from China and India). Local steelmakers such as ArcelorMittal South Africa are expanding capacity to fill the gap, while calling on the government to raise import tariffs to protect the local industry. Industry insiders predict that with the deepening of the South African Local Content Policy, local profile production is expected to rise by 15-20% in 2024

Price Volatility and Sustainable Trends

Fluctuating international raw material prices and an unstable rand exchange rate are putting pressure on the South African carbon steel profile market, but the industry is reducing costs through technological innovations such as green steelmaking processes. In addition, tighter environmental regulations are prompting more companies to source recyclable carbon steel products to comply with ESG (environmental, social, governance) standards