SAISC Warns Steel Tariffs Could Trigger Supply Shortages And Disrupt South Africa’s Industry

Source: Supplied. Amanuel Gebremeskel, chief executive officer of SAISC.

While supporting efforts to strengthen local industry, SAISC warns that the measures may trigger unintended consequences, including supply shortages and market disruption.

The organisation is calling for a more balanced approach to ensure industry sustainability and avoid negative impacts on infrastructure delivery and competitiveness.

Industry feedback indicates that steel merchants and service centres are already cancelling or delaying import orders in response to the sudden tariff implementation. At the same time, certain locally produced steel products are no longer available at previous volumes.

“This creates a real risk of supply shortages in the market, particularly in specialised sizes and specifications not readily available locally,” says Amanuel Gebremeskel, chief executive officer of SAISC.

“If not carefully managed, these measures may increase project costs, delay infrastructure delivery, and reduce the competitiveness of South African exports — outcomes that run counter to the intent of supporting a stable and competitive local steel industry.”

Balancing steel sustainability

SAISC has recommended that consideration be given to a phased or delayed implementation of the tariffs, allowing the market to adjust without disrupting supply chains or ongoing projects.

“This is not simply a trade issue, it is a supply-chain and industry sustainability issue,” says STEASA chief executive officer Keitumetse Moumakoe. “A balanced approach is required to ensure that while local industry is supported, the market remains sufficiently supplied with the materials needed to deliver on infrastructure and economic development.”

Beyond supply concerns, SAISC emphasises that the long-term sustainability of the steel industry depends on more than trade measures alone. “Quality, traceability, and compliance across the value chain are becoming increasingly critical as supply patterns shift,” adds Gebremeskel.

To address this, SAISC will launch its Quality Certification Programme in 2026, aimed at strengthening confidence in both locally produced and imported steel.

“The programme is designed to support verification, traceability, and responsible specification across the value chain ensuring that quality becomes a defining factor in procurement, not just price.”

SAISC concludes that a measured approach is required; one that supports local industry while ensuring that the market remains supplied with quality, fit-for-purpose steel.