We Need to Safeguard Jobs and Economic Growth in the Steel Sector

Statement by Mlondli Mdluli MP – DA Deputy Spokesperson on Trade, Industry & Competition:

The Democratic Alliance (DA) has formally written to the Chairperson of the Portfolio Committee on Trade, Industry and Competition to urgently convene a series of stakeholder engagements on the state of South Africa’s steel and scrap metal industries.

The steel sector remains a cornerstone of South Africa’s industrial economy, underpinning critical industries such as construction, mining, and manufacturing. However, the industry is facing significant strain, with declining production, rising input costs, logistics constraints, and increasing import competition threatening its long-term sustainability.

Of particular concern are recent developments involving ArcelorMittal South Africa, where the potential closure of certain operations places thousands of direct and indirect jobs at risk. Any further contraction in this sector would have severe knock-on effects across the broader manufacturing value chain, placing additional pressure on an already fragile economy.

At a time when South Africa continues to battle high unemployment, it is critical that Parliament exercises strong oversight to ensure that industrial policy supports job retention and economic growth. The steel industry is a strategic national asset with far-reaching implications for localisation, infrastructure development, and competitiveness.

At the same time, ongoing debates around the regulation of the scrap metal market, including the Price Preference System and export controls, highlight the need to assess whether current policies are achieving their intended objectives. While the scrap metal sector plays a vital role in supporting local production and the recycling economy, there are differing views on the effectiveness and unintended consequences of these interventions.

The DA has proposed that the Committee invite a broad range of stakeholders, including primary steel producers, scrap metal industry representatives, mini-mill operators, downstream manufacturers, and relevant industry bodies, together with the Minister of Trade, Industry and Competition and departmental leadership.

Such engagements are necessary to:

• Fully understand the scale of the challenges facing the sector
• Assess the risks to jobs and industrial capacity
• Interrogate whether current policy instruments are fit for purpose
• Identify practical steps to restore growth and competitiveness

South Africa cannot afford continued industrial decline.

The Democratic Alliance (DA) remains committed to advancing policies that support industrialisation, protect jobs, and enable sustainable economic growth.