Local supply chain and logistics bottlenecks have significantly impacted on steel trading and distribution company Tradecore Steel’s manufacturing operations.

These bottlenecks can be attributed to delays in raw material deliveries, transport inefficiencies and port congestion, all of which have led to increased costs and production delays. Consequently, this has affected the steel industry’s competitiveness and innovation capacity, the company adds.

The local steel industry faces multiple challenges, including high production costs and fluctuating global steel prices, as well as competition from imported steel products, explains Tradecore Steel founder and director Jean-Paul Briner.

Additional difficulties for companies aiming to develop steel products locally include inadequate infrastructure, energy supply challenges and regulatory constraints.

In outlining the importance of the steel industry in South Africa’s industrialisation efforts, Briner explains that the industry provides essential materials for infrastructure, manufacturing and industrial applications.

“Steel contributes significantly to the country’s GDP, with estimates suggesting that the sector accounts for about 1.5% to 2%. This contribution extends beyond direct economic impact to include job creation, support for ancillary industries and the promotion of technological advancements,” he asserts.

The company highlights that technology is revolutionising its production processes through automation, advanced manufacturing techniques and data analytics. Importantly, this leads to improved efficiency, reduced costs and higher-quality products, Briner notes.

Tradecore Steel views technology as crucial for enabling a cleaner steel industry by promoting energy efficiency, reducing emissions and facilitating the use of alternative, sustainable raw materials.

As part of its efforts to create greater local demand for decarbonised steel products, the company is focusing on raising awareness about the environmental benefits of decarbonised products, advocating for policies and incentives that align with steel decarbonisation imperatives, and collaborating with key stakeholders across the steel value chain.

It is also emphasising the importance of investing in research and development to improve the cost-effectiveness and performance of green steel products.

Market Significance

Tradecore Steel offers a comprehensive range of steel products, including structural steel, steel plates, coils and custom steel components. The company notes that these products are vital for various markets, particularly the mining and construction sectors.

“Tradecore Steel maintains a strong relationship with stakeholders in the mining and infrastructure sectors by providing high-quality steel products tailored to their specific needs. Collaborative projects, supply agreements and dedicated service offerings ensure that these sectors have reliable access to the necessary materials for their operations and development initiatives,” Briner emphasises.

The company also has a significant presence in several regions on the continent, including Southern Africa, East Africa and West Africa. The decision to enter these markets was informed by the demand for steel in infrastructure projects, the mining sector’s growth on the continent and the need for industrial development.

Tradecore Steel highlights that its market entry strategies emphasise partnerships, a local presence and a deep understanding of regional market dynamics.

Meanwhile, Briner stresses that the company is committed to continuous improvement and innovation to meet the evolving needs of customers and contribute to a sustainable future.

“We believe in the potential of the steel industry to drive economic growth while addressing environmental challenges, and we are dedicated to playing a leading role in this transformation,” he concludes.