Domestic steel sales in South Africa went 17.7% up in Q3 2008, due to high demand triggered by the development in infrastructure and various other sectors of the country.
South African Iron and Steel Institute’s figures revealed that the sales of domestic carbon steel in South Arica grew to 1.55 Million Tonnes in Q3 2008, 17.7 % up on YOY basis and 2.1% higher than Q2 2008, as reported by SteelGuru.
During the period of January-September 2008, sales of carbon steel flat products increased by 9.5% over the same period in 2007, whereas profile product sales grew by 10.9%. This took the total growth to 10.2% during the period. But exports of the primary carbon steel products tumbled 38% in Q3 2008 to 0.31 Million Tonnes on YOY basis.
The major factor that stimulated the growth in domestic steel sales in South Africa is the boost in the demand of steel. The development in the infrastructure and construction sector in the country raised the steel demand, thereby assisting the sales growth further. The extension of electricity system and development of the railway infrastructure also pushed the domestic steel demand high.
Moreover, since the transport, communications and mining and manufacturing sectors are undergoing development process, the sales of steel are rising in the country.
Moreover, as South Africa is going to host the World Cup Soccer in 2010, construction and renovation work of the stadiums is at its peak in the country. This has further made the steel demand to shoot up.
Growth in steel sales in South Africa signifies the development and optimistic financial activity in the country. Also, the fast extension of some of the leading steel companies in the country is further leading the steel industry to move in a positive direction.
According to a Research Analyst at RNCOS, “The South African steel industry is booking good results as the demand for steel is soaring in the country. And since it contributes significantly to the annual GDP, the country’s economy is benefitting too. Steel makers and investors are also cutting huge profits from it.”
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