Updated market information from the South African Wire Association

The South African Wire Association (SAWA) has indicated that the wire industry is currently in lockdown in South Africa. “Our products are not categorised as essential goods” , says Keith Campbell, director SAWA. “As a result the industry is not able to operate. This unfortunately comes at a time when exports of wire products have showed a steady upward trend for the last few years, with a reduction in imports. South African producers and exporters will be ready to supply their quality products along with expertise and good client service, once restrictions are lifted.”

Campbell notes that once trading commences, there will be a glut of steel and wire products available from all exporting countries which will probably drive prices down. However, the weaker South African Rand, against other major currencies will benefit export and assist South African businesses to remain competitive globally.

SAWA expects that all port facilities will be congested once restrictions are lifted. Shipping lines will need to reposition vessels, but freight rates (which remain US dollar based) should come down, as world bunker prices will become more affordable. This may unfortunately result in the exchange rate advantage which benefits local business to be negated due to the Rand /US$ exchange rate (swings and roundabouts scenario).

“The South African Department of Trade and Industry (the dti) has designed a questionnaire/survey for exporters to prioritise elements of the export process which will benefit industry and ensure a swift route to resume exports”, notes Campbell. There is currently no specific government assistance for the primary/downstream steel industries.

SAWA remains available to assist any European organisations who have enquiries regards the high quality wire products South Africa produces.

Please contact SAWA at
Tel: +27 (0) 11 615 0949; +27 (0) 11 626 1204
E-mail: [email protected] ; [email protected]