South Africa

The Steel and Metal Fabrication Master Plan (SMP) was launched as a government/industry partnership to revive the steel sector, with objectives including support for downstream manufacturing, ensuring affordable recycled steel and steel supply, and promotion of local beneficiation and jobs. Over time, however, stakeholders have raised concerns about the lack of progress and poor implementation.

The SMP is said to be underperforming, with several stakeholders calling it “ailing” or “ineffective”. At the same time, there is significant tension between recycled metal exporters and local users surrounding policies aimed at keeping recycled steel affordable for local mills and fabricators versus market forces that favour exports. According to industry players, uncompetitive steel prices, a failing localisation drive and policy uncertainty have eroded trust and investment.

Local fabricators and mills depend heavily on recycled metal to keep costs manageable. Intended to keep prices low domestically, recycled steel export restrictions have been one of the SMP’s controversial interventions, with critics arguing that it distorts the market and disincentivises collection and supply of good-quality material. Calls have been made to move away from blanket export bans or restrictive directives in favour of more targeted, industry-aligned approaches.

At a recent committee briefing and stakeholder workshop, experts and industry participants proposed: reviewing the SMP to align with realistic industry capacities and global competitiveness; focusing localisation policies on sectors like machinery, automotive and construction, which have better potential for beneficiation; revisiting recycled steel export restrictions and finding a balanced approach that incentivises both local use and sustainable collection; and improving governance, transparency and accountability in implementing the SMP.

The Parliamentary Portfolio Committee on Trade, Industry & Competition was briefed recently. Members acknowledged both the importance of the steel sector and the SMP’s lack of measurable impact so far. The Committee has called for updated progress reports and stakeholder engagement to adjust the plan, as well as for clearer monitoring and evaluation mechanisms.

At present, South Africa’s recycled steel market remains constrained by inconsistent policies, weak implementation of the SMP and a fragile industrial base. However, there is a renewed momentum towards reassessing the SMP and developing a more practical, collaborative approach, especially in aligning recycled steel availability with local steel needs while keeping the industry competitive globally.