Feb 18 2011
Research and Markets has announced the addition of the "South Africa Metals Report Q1 2011" report to their offering.
Business Monitor International's South Africa Metals Report provides industry professionals and strategists, corporate analysts, metals associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on South Africa's metals industry.
South African metals producers will face slower rates of growth over the medium term, but the recovery in 2010 will be sustainable, according this latest South Africa Metals Report from BMI.
In 2010, BMI estimates that crude steel output will grow 13.6% year-on-year (y-o-y) to 8.5mn tonnes and hot-rolled output 13.4% to 6.2mn tonnes, boosted by the economic recovery and export growth. South Africa represents 50.9% of total African crude steel output, with all the other major producers located in North Africa. These increases reversed most of the losses of 2009, although overall capacity utilisation rates are still low and margins are poor. It will take until 2014 for the South African steel industry to exceed its peak 9.72mn tonnes production in 2006 and BMI forecasts output exceeding 10mn tonnes again for the first time in 2015. However, rising domestic electricity prices and a strongly priced rand will undermine competitiveness in the South African metals industry and present downside risks.
Some segments are more promising than others, but dependent on the market trends in Asia. South African ferrochrome prices were on the rise from end-2010 due to a bullish stainless steel market leading to shortages, as well as a strong rand, higher power costs and problems relating to labour disputes and transportation. Although ferrochrome prices in Q410 were less than half the level seen before the economic crisis of September 2008, high trading levels have prompted analysts to forecast a bullish market in 2011 and a swift return to pre-crisis levels by mid-year. China and India's growing steel industries are driving global ferrochrome demand. In terms of domestic stainless production, BMIs forecasts for South African output remain bullish following an anticipated record year in 2010 recovery is likely to be sustained throughout 2011 and 2012.
Key Topics Covered:
- Executive Summary
- SWOT Analysis
- Commodities Forecast
- Aluminium
- Macroeconomic Forecasts
- Company Profiles
- BHP Billiton
- Global Assumptions Q1 2011
- Country Snapshot: South Africa Demographic Data
- BMI Methodology
- How We Generate Our Industry Forecasts
- Cross Checks
Companies Mentioned: