Latest news with #AluminiumFederationofSouthAfrica
The Star
4 days ago
- Business
- The Star
South Africa's steel and aluminium sectors brace for impact as US doubles tariff charges
Banele Ginindza | Published 3 hours ago South Africa must adapt to new challenges as US President Donald Trump announced a fresh round of import tariff hikes of up to 50% on steel and aluminium this week, compounding the effects of April's 25% increase, according to stakeholders and analysts. The local sector is still grappling with disrupted global supply chains, rising manufacturing costs, and reduced competitiveness for South African automotive products in the US market. Many South African businesses are now exploring alternative markets in Africa, Asia, Europe, and the Middle East to reduce reliance on the US. The announcement came as South Africa and other countries trading with the US benefited from a 90-day tariff suspension beyond the 10% base tariff, providing a window for strategic negotiations to safeguard key exports and explore new trade avenues during a recent meeting between President Cyril Ramaphosa and his US counterpart. Friday's decision to raise tariffs on imported steel and aluminium from 25% to 50% escalates Trump's global trade war, coming hours after he accused China of violating an agreement to mutually roll back levies and trade restrictions on critical minerals. The European Commission responded on Saturday, signaling readiness to retaliate against the US plan, raising the prospect of an escalating trade conflict between major economic powers. Donald MacKay, the founder and CEO of XA Global Trade Advisors, noted that while South Africa's steel exports to the US are limited, the impact will still be felt. 'Aluminium is exported in far greater volumes, but the US has limited aluminium production, so prices will likely rise. This isn't good, but it's not devastating either,' MacKay said. South Africa's aluminium sector had previously been exempted from emergency tariff decisions due to the commodity's scarcity status. Muzi Manzini, the CEO of the Aluminium Federation of South Africa, expressed optimism about a potential deal involving South Africa purchasing US liquefied natural gas for a minimum of 10 years in exchange for steel and aluminium tariff exemptions. 'Unless we're back to the US's haphazard tariff policy, the trade court's ruling that the President lacks authority to impose tariffs may hold, despite the appeal. If this stifles Trump's tariff plans, we could revert to rules-based World Trade Organisation processes,' Manzini said. According to a PricewaterhouseCoopers (PwC) report, US Tariffs vs South Africa: A New Economic Era? , published on Friday, the tariffs have disrupted trade volumes and supply chains, reducing South African exports to the US due to higher costs. In response, businesses are leveraging the African Continental Free Trade Area (AfCFTA) agreement to boost intra-African trade and regional economic integration while prioritizing the transformation of raw materials into higher-value finished goods to mitigate tariff exposure and drive innovation. The report highlights that the tariffs will likely impact key export sectors, particularly agriculture and automotive, which are critical for revenue and youth employment. As the US is South Africa's second-largest bilateral trading partner, these changes could lead to reduced exports, lower selling prices to offset higher US landed costs, and potential job losses as US buyers turn to alternative sources. Despite these challenges, PwC notes that free trade agreements like the African Growth and Opportunity Act (Agoa) and AfCFTA offer significant opportunities. 'Although Agoa's future remains uncertain, it continues to be a valuable tool for South African exporters to maintain competitiveness in the US market,' the report stated.
The Citizen
28-05-2025
- Business
- The Citizen
Spectrum Technical hosts successful 2025 Aluminium Technology Seminar
Local metallurgical solutions provider Spectrum Technical recently hosted its third Aluminium Technology Seminar, drawing participation from across the South African aluminium sector. The two-day event, held at the Indaba Lodge in Richards Bay, showcased global advancements in casthouse operations, aluminium processing and sustainability trends. 'We've built a reputation for not only providing leading equipment and technology but also creating platforms where industry professionals can share knowledge and ideas,' said Kumaran Poonan, Director of Spectrum Technical's metals division. 'Following the success of our previous seminars in 2013 and 2017, the 2025 edition was designed to reflect the evolving needs of the aluminium industry, especially around digitalisation and responsible production.' This year's seminar saw over 80 delegates in attendance, representing smelters, extrusion plants, rolling mills, and service providers from across South Africa. Technology companies from Canada, Sweden, France and Italy delivered technical presentations. Delegates included process engineers, metallurgists, plant managers, maintenance and operations teams involved in both primary and secondary aluminium production. The keynote address was delivered by Muzi Manzi, CEO of the Aluminium Federation of South Africa (AFSA), who set the tone for the event by outlining key trends in the global and local aluminium sector. His presentation highlighted South Africa's strategic position in the decarbonisation of global supply chains and called for stronger collaboration between technology providers and smelters. 'Each speaker brought relevant, practical insights,' said Thami Maphanga, metallurgist at Spectrum Technical. 'Delegates appreciated the mix of real-world applications and future-focused technologies. The networking sessions also allowed for valuable dialogue between smelter teams and OEMs.' The event also included a gala dinner where delegates engaged informally with one another in a fun-filled evening. For more information, contact Spectrum Technical at seminar2025@ +27 35 789 6563 or visit At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
