Surge in Steel Imports Threatens Domestic Market Stability

The South African Iron and Steel Institute (SAISI) remains committed to monitoring the flow of steel products into our domestic market to ensure the long-term sustainability of the local primary steel-making industry. Following a detailed review of the trade data for January 2026, SAISI expresses concern over the escalating volume of steel imports entering the country. Total imports reached 159,251 tonnes in January 2026, representing an 11.8% increase compared to the 142,386 tonnes recorded in January 2025. This upward trajectory places additional pressure on domestic producers who continue to navigate a complex global trading environment.

The most alarming trend is observed in the long-style category, which witnessed a staggering 151% increase in import volumes. Shipments rose from 9,861 tonnes in January 2025 to 24,742 tonnes in the current period. This surge was primarily driven by Structural steel (HR Sections (Heavy/Light)), which grew from 1,334 to 7,803 tonnes, and a massive spike in Wire Rod imports, jumping from a mere 27 tonnes to 2,524 tonnes.

SAISI views this influx as a direct threat to the local long-steel value chain. The displacement of local production by imported structural sections and wire products undermines the capacity utilisation of domestic mills.

Flat Products, which constitute the largest share of imports by volume, saw a growth of 5.3%, totaling 111,772 tonnes. While the overall growth in this segment appears contained, the internal shifts are noteworthy. HR coil/sheet and plate coil imports rose significantly from 24,616 to 42,959 tonnes.

The continued high volume of imported flat products, particularly in hot-rolled and coated/galvanised categories, remains a focal point for SAISI. The domestic industry possesses the technical capability and capacity to meet local demand for these high-value products. The persistent reliance on imports for these grades highlights the need for continued vigilance and a supportive policy framework to prioritise local procurement.

From SAISI’s perspective, the start of 2026 indicates a market where domestic market share is under siege. While the increase in construction-related materials like reinforcing bars (up from 302 to 1,210 tonnes) suggests underlying demand, it is imperative that this demand is serviced by local manufacturers to support job retention and industrial growth.

SAISI will continue to engage with regulatory bodies and stakeholders to ensure that the domestic steel industry remains competitive. We advocate for fair trade practices and the utilization of local steel in all infrastructure and industrial projects to secure the future of the South African steel sector.