South Africa’s steel industry is facing a crisis, with ArcelorMittal South Africa (AMSA) announcing plant closures due to rising energy costs, outdated infrastructure, and cheaper imports. 

The 2021 Steel and Metal Fabrication Master Plan (SMP) aimed to boost local production but has struggled to deliver results. Besides, tariffs on imports have backfired, raising costs for downstream industries instead of strengthening local steelmakers. 

Experts warn that outdated blast furnace technology and weak transport infrastructure further weaken competitiveness. Job losses continue to rise, with thousands more at risk. Urgent reforms in energy security, infrastructure investment, and modernization are needed to prevent the industry’s collapse.