Headwinds face metals and engineering sector
September 2022
News
The Steel & Engineering Industries Federation of SA (SEIFSA) has warned that the outlook for the metals and engineering sector has shown a marked deterioration after a strong start to the year.
The performance of this sector is indicative of the prevailing economic fundamentals. “It is also extremely sensitive to these prevailing global and domestic economic events. In fact, our estimates already point to production contracting by between 1,1% and 1,3% in the second quarter, with notable downside risks for the full-year outlook,” says SEIFSA COO, Tafadzwa Chibanguza.
“During the first quarter, inflationary pressures were already building in the global economy. However, this was initially driven by aggregate demand increasing faster than supply chains could respond. The invasion of Ukraine by Russia on 24 February set the proverbial cat among the pigeons in economic and inflationary terms,” he says.
Chibanguza has identified the themes behind global and domestic economic fundamentals at present, which include the aggressive monetary policy tightening in the US in response to multiyear record inflation; the effect of the Russia-Ukraine war on the EU economy; and China’s aggressive zero-Covid-19 policy, which has impacted the country’s economic hubs of Shanghai and Beijing.
“These themes will dominate the global economic narrative and the slowing of global economic growth. Steel production is highly correlated to growth and the early warnings signs of a slowing growth rate are evident in the decline in iron ore prices, a key ingredient in steel production,” he says.
“A rising tide lifts all boats, but the inverse is also true. In a less supportive global economic environment, and with headwinds intensifying, domestic economic policy and reform have to do a lot of heavier lifting to support the economy. Domestic intervention to counter these headwinds and support the metals and engineering sector is essential,” concludes Chibanguza.
Further reading:
Pump spares and parts for Africa
News
KSB Pumps and Valves explains how its decentralised stockholding and local manufacturing keep spares and parts available across its installed base in Africa.
Read more...
Inspiration for times of change
Endress+Hauser South Africa
News
More than 2000 customers, partners and experts gathered in Basel, Switzerland, for the Endress+Hauser Global Forum in April 2026. Under the theme of driving sustainable transformation together, the event combined keynote sessions on strategy, technology and the future of work with practical case studies from across the process industry.
Read more...
Local energy solutions rewiring resilience across Africa
News Fieldbus & Industrial Networking
Engineers across Africa are developing practical, scalable energy and mobility solutions supported by the Africa Prize for Engineering Innovation.
Read more...
The gender gap in SA’s engineering sector
News
South Africa’s engineering sector is facing a critical gender imbalance, with women making up just 16% of registered engineering professionals compared to 84% of men.
Read more...
Safe removal of the historic US 181
News
Mammoet provided the heavy-lift expertise that helped remove the 2300 ton centre span of the historic US 181 Harbor Bridge in Corpus Christi, Texas, using a precision lift-and-lower method that protected nearby marine environments and reopened navigation channels swiftly.
Read more...
Going Green initiative sees African Group Lubricants adopt electric forklift fleet
News
African Group Lubricants is transitioning most of its forklift fleet to electric power, a move expected to cut diesel consumption by around 85% and improve conditions across its manufacturing facility while delivering a positive return on investment in the near term.
Read more...
Africa Energy Indaba 2027 aims to ignite the power revolution
News
Africa Energy Indaba 2027 takes place from 2 to 4 March 2027 at the Cape Town International Convention Centre, bringing together ministers, utilities, investors and developers to accelerate energy generation, unlock investment and drive the continent’s industrial future.
Read more...
Major bearing tender for SKF
SKF South Africa
News
SKF has secured a major bearing supply tender from an Algerian steelmaker, reinforcing its position in the metals segment across North Africa.
Read more...
Mining’s decarbonisation journey requires putting ESG commitments into action
Schneider Electric South Africa
News
Schneider Electric specialists explain how mining and heavy industry can turn environmental, social and governance commitments into measurable decarbonisation results.
Read more...
Closing the energy efficiency gap at SKF’s Tech & Innovation Summit
SKF South Africa
News
SKF is hosting its yearly virtual Tech & Innovation Summit, bringing together industry leaders and experts to showcase technologies, products and solutions designed to help close the energy efficiency gap in industrial operations.
Read more...
printer friendly version