South Africa’s crude steel production remained under pressure in the first quarter of 2026, reflecting continued weakness in industrial activity and ongoing structural challenges facing the sector. Crude steel output declined by 16.7% year-on-year in March 2026, decreasing from 446,900 tonnes in March 2025 to 372,300 tonnes.

The decline was evident across the quarter as a whole. Total production for Q1 2026 fell to 972,800 tonnes, down 17.6% compared to 1.18 million tonnes produced during the same period in 2025. The sustained weakness across all three months points to subdued demand conditions and lower capacity utilisation across the domestic steel industry.

Despite the weaker year-on-year performance, there were modest signs of stabilisation during the quarter. Production levels improved progressively on a month-on-month basis in early 2026, indicating some operational recovery and a gradual normalisation in activity following the softer start to the year. While these gains remain insufficient to offset the broader annual decline, they suggest that production conditions may be beginning to stabilise.

The sector continues to face a combination of cyclical and structural pressures, including weak construction and manufacturing demand, infrastructure delays, logistics inefficiencies, and energy-related constraints. 

Although March typically reflects stronger industrial momentum following the start of the year, output remained well below March 2025 levels, highlighting the fragile nature of the recovery environment. Overall, the latest figures reinforce the importance of stronger infrastructure investment, improved network efficiencies, and supportive industrial policy measures to support a more sustainable recovery in South Africa’s steel sector.