Fluctuating primary pricing threatens the mettle of South Africa’s steel industry

At present, companies in the local steel industry are finding the market very challenging. According to industry sources, much of this can be attributed to the extreme volatility of the primary pricing. “This level of volatility poses an enormous and very urgent challenge to the entire sector,” explains Warne Rippon, Executive Director of steel major Allied Steelrode. These price fluctuations result in a knock-on effect which is very hard to contend with. “If we are experiencing this, then our downstream customers must be even more adversely affected,” he remarks. “What the market desperately needs at this point is a more stable and reality-based pricing system going forward. Quoting customers accurately - even three months ahead -  is extremely difficult when you have this level of pricing volatility to contend with,” he adds.