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Inflation to cut into steel sector
JOHANNESBURG - The Metals and engineering Sector will need to reinforce itself this year.
The Steel and Engineering Industries Federation of SA has released its State of the Sector Report.
It expects it to contract by 2.2 percent in 2023, compared to a 1.6 percent increase in 2022.
"What it is, is a toxic mix of a weaker global economic environment," says SEIFSA Chief Operating Officer Tafadzwa Chibanguza.
"In the weaker global economic environment a lot of the countries where financing becomes tighter, they become fiscally vulnerable and this has a dampening effect on demand and that's on the external side," said Chibanguza.
On the internal side, all the sectors that they supply into, construction, mining, petrochem, agriculture, have all come out with statements that's it going to be a difficult year ahead.
"The combination of those internal demand and supply side factors are really what are making us flag that number," said Chibanguza.