Projected Increase in Demand for Steel & Value Added Steel Products in 2023
20 March 2023
A Hopeful Outlook for South African Steel in African Mining Projects
Engineering News has reported a projected increase in demand for South African value added steel products in mining projects across Africa amid poor service delivery and high transport costs from China, as well as rising political tension between China and Australia.
Adding to this, Bloomberg reports that China will again cut annual crude steel production in 2023, marking the third year in a row that the government has mandated reduced output in order to rein in carbon emissions.
As a result of difficulties with China, Australia-based mine owners are sourcing new suppliers and creating opportunities for local suppliers to meet this demand as well as demand from Africa says export trade promotion agency International Steel Fabricators (ISF) CEO Neels van Niekerk.
Customs data shows a total of 73 484 tons of primary steel products exported by South Africa during December 2022. A decline of 41,4% and 35,7% compared to December 2021 and 2019 respectively. Annual 2022 exports declined by 3,2% and 43,2% compared to the same period in 2021 and 2019 respectively. During 2022, the share of exported primary steel product was as follows: flat products (46,6%), section and bar (26,2%), intermediate products, (21,3%), wire (5,5%), and rail (0,3%).
South Africa exported approximately 867 000 tons of steel to African countries in 2022. Exports were mostly destined to sub-Saharan African countries.
However Van Niekerk tells Engineering News that demand for locally-produced steel structures is expected to surge before the end of the year. “Local suppliers need to bring their offering to the attention of the identified potential clients wherever they are situated to access these opportunities,” enthuses Van Niekerk.
“We have already received numerous requests from all over South Africa and beyond for the sourcing of products listed. Merchant members are now able to load the details of their service offerings while being part of an interactive map, which should reduce the need to interact with the ISF Secretariat,” says Van Niekerk.
The organization aims to increase export volumes of value-added steel structures, mine processing and pressure equipment from its Southern African members and to grow the number of exporters joining the ISF’s endeavors.
National Budget Suggests Further Opportunities for Growth within South Africa
The 2023-24 National Budget also presented some opportunities for the local steel sector that, if realised, would propel steel demand in the local market.
Some of the key announcements were around supporting infrastructure, mainly transport and logistics, water and sanitation, and the construction sector. R903 billion was allocated to infrastructure development over the medium-term expenditure framework. Most of the spending is allocated to transport and logistics (R351.1 billion) and water and sanitation (R132.5 billion). This is a pivotal point for the steel sector, whose performance is driven by investment in infrastructure.
The large-scale “shovel-ready” infrastructure projects already approved include:
- R3.8 billion over the medium term for Phase 2 of the Welisizwe Rural Bridges programme which is expected to start in April this year. The plan is to install 96 bridges annually to enable rural communities in the Eastern Cape, KwaZulu-Natal, Mpumalanga, Limpopo, Free State, and North West to safely and more easily access schools and workplaces.
- The 488-bed Limpopo Central Hospital which will finally begin construction in March this year.
This is good news for local suppliers and manufacturers in these sectors who can beat loadshedding and create a reliable supply chain for local and international demand.
Re-roofing a Landmark: NJR Delivers Engineering Precision at NWU Auditorium NJR Potchefstroom was recently commissioned by North-West University (NWU) to solve a persistent leak in the auditorium roof—a complex task due to the very low pitch of the existing structure. Rather than replace the roof entirely, the team opted to erect a new roof structure over the old one. This solution ensured minimal disruption to ongoing activities inside the auditorium. In the absence of an appointed architect, NJR joined the design team directly, offering both product expertise and technical input. Our proposed light steel truss system was reviewed and approved by the project’s structural engineer. The project posed significant engineering challenges. The 40-year-old auditorium had no CAD documentation—only original paper plans. The building’s large, kite-shaped roof spans 70 metres diagonally and 35 metres across the shorter axis, with perimeter wall heights reaching 12 metres.
Strong Foundations Start with NJR Steel Rustenburg
Multi-Functional Security Made Simple: NJR’s DeFence System Delivers Beyond the Perimeter What began as a standard perimeter fencing installation at a major shopping centre quickly evolved into a showcase of the adaptability and effectiveness of NJR Steel’s DeFence modular fencing system. Originally specified to secure the property boundary, the see-through DeFence panels and modular post system proved so versatile that they were soon deployed across a wide range of additional security applications on-site. These included protective enclosures for external air conditioning units, electrical distribution boxes, water tanks, and other vulnerable infrastructure installations—demonstrating the system's suitability for more than just perimeter DeFence.
Winter Steel DIY Projects: Build a Fire Pit, Braai Stand or Wood Rack with NJR Steel As winter sets in and temperatures drop, there’s no better time to roll up your sleeves and build something that brings warmth and style to your space. Whether you’re creating an outdoor braai area, a durable fire pit, or a sleek wood storage rack, NJR Steel is your one-stop shop for steel and hardware this winter. We supply not only structural steel—like square tubing, angle iron, and flat bar—but also the essential hardware, tools, paints, primers, mesh, welding gear, and accessories to bring your projects to life. You can also get everything you need delivered straight to your door by shopping NJR steel and hardware products online here.
Need Steel Cut to Size or Delivered Fast? NJR Steel Has You Covered At NJR Steel, we know that for contractors, project managers, and hands-on DIYers, time is money. You need more than just raw steel, you need precision services, reliable supply, and a partner that understands the demands of real-world building. That’s why NJR Steel offers a full suite of value-added services to simplify your workflow, reduce on-site labour, and help you deliver quality results - faster.
Winter-Proof Your Roof: A Complete Guide to Roofing & Roof Paint Solutions from NJR Steel As winter approaches, roofing becomes more than just a structural element—it’s your property’s first line of defense against cold winds and moisture-related damage. At NJR Steel, we understand that quality roofing and protective roof coatings are essential not just for comfort, but for long-term asset protection and value preservation. Whether you’re a contractor, homeowner, or developer, this guide will help you prepare your roofing for winter—using industry-leading products and best practices available at NJR Steel. Why Winter Roofing Maintenance Is Critical South African winters can bring sudden weather changes. Neglecting your roof can lead to: Water ingress and leaks Rust and corrosion of metal sheeting Heat loss and insulation issues Increased repair costs later in the year By taking proactive steps now, you can avoid costly emergencies down the line—and extend the lifespan of your roof system.
NJR Steel Westdene: Recognizing Potential, Fostering Excellence Aubrey's Remarkable Journey at NJR Steel Westdene Founded in 1980 by Nigel Riley, NJR Steel Westdene has established itself as one of South Africa's leading steel merchants and manufacturers. The company's commitment to quality and customer satisfaction is evident in its excellent service, reliable deliveries, and competitive pricing. However, what truly sets NJR Steel Westdene apart is its dedication to recognizing and nurturing the potential of its employees. One such inspiring story is that of Mbulaheni Makhuvha, known to many as Aubrey. Aubrey's journey is a testament to the power of perseverance and the opportunities that arise when a company believes in the potential of its people.
Honouring Human Rights Day: NJR Steel’s Commitment to Community Empowerment On Human Rights Day, we reflect on the fundamental values of equality, dignity, and opportunity for all - principles that resonate deeply with NJR Steel’s mission to empower communities through sustainable initiatives. Our dedication extends beyond providing quality steel products; it encompasses fostering economic growth, supporting education, and uplifting the communities we serve. Seeds of Change: Cultivating Entrepreneurship A cornerstone of our community engagement is our partnership with Seeds of Africa, particularly through their Seeds of Change Enterprise and Supplier Development Program. This comprehensive initiative offers: • Business Skills Training : Equipping entrepreneurs with essential knowledge in financial management, marketing strategies, and operational efficiency. • Mentorship and Coaching : Providing personalized guidance to navigate business challenges and seize growth opportunities. • Access to Resources : Facilitating entry to business services, markets, and interest-free seed capital to foster sustainable development. Since its inception in 2019, the program has empowered over 229 individuals to develop and grow their own small businesses, thereby creating job opportunities and stimulating local economies. Empowering Local Enterprises Through the Seeds of Change program, NJR Steel has integrated several emerging businesses into our supply chain, exemplifying our commitment to supplier development. Notable collaborations include: • Akunamlilo Fire Fighting Services & Supplies : Specializing in firefighting equipment and training, contributing to community safety. • Ayoba Steel : A steel business established in Cosmo City with NJR Steel’s support, fostering local entrepreneurship. • Beake Engineering : Manufacturing products for NJR Steel’s Rustenburg branch, showcasing successful enterprise development. • Bohlalepele : Providing security services for NJR Steel’s central buying operations, enhancing operational integrity. • Bonimpumelelo : Operating an onsite canteen at the NJR Labore facility, ensuring employee well-being. • Brimo Consulting : Delivering digital marketing and design services to various NJR Steel branches, supported by NJR Steel’s funding for a business vehicle. • Hamara Holdings and Lamesh : Both steel manufacturing companies receiving support from NJR Steel, underscoring our dedication to empowering local manufacturers. • Mokaleng Electrical : Providing electrical services to various NJR Steel branches, ensuring operational efficiency. • Ntuthuko Cleaning Company & Supplies and Preen Clean : Offering cleaning services and supplies, maintaining a safe and hygienic environment. • Thobela Three Sisters : Supplying cleaning products to NJR Steel branches, supporting local enterprise. • Tholotech CC : Providing onsite shredding and recycling services at NJR’s Labore facility, promoting sustainability. These collaborations not only bolster the growth of small businesses but also enrich NJR Steel’s supply chain with diverse, locally sourced services. Supporting Early Childhood Development Beyond enterprise development, NJR Steel, in partnership with Seeds of Africa, is actively involved in uplifting communities by supporting a growing number of early childhood development centres through the Adopt-a-Creche Program. This initiative benefits over 8,000 children aged 1 month to 6 years by providing essential educational materials, conducting baseline tests, and offering comprehensive teacher training and access to a resource centre. This holistic approach prepares children for school and empowers educators, making a significant impact on the community. A Commitment to Sustainable Development NJR Steel’s commitment to social responsibility is further exemplified through our support of multiple local initiatives, including Seeds of Africa. This partnership reflects our dedication to uplifting the community and fostering economic empowerment. By investing in people and supporting sustainable business practices, NJR Steel aims to create a lasting positive impact on society. Looking Ahead As we commemorate Human Rights Day, NJR Steel reaffirms its commitment to initiatives that promote equality, economic empowerment, and community development. Through partnerships like those with Seeds of Africa, we strive to build a future where every individual has the opportunity to thrive.
Building Better Communities: NJR Steel Westdene Supports Sophiatown Cleanup At NJR Steel, we believe in building more than just strong structures, we believe in strengthening our communities. As part of our commitment to corporate social responsibility, NJR Steel Westdene has donated heavy-duty weed eaters to aid in the beautification and maintenance of Sophiatown. We understand that our role extends beyond providing quality steel products, we are committed to building stronger, more vibrant communities. The initiative, in collaboration with the City of Johannesburg, is focused on improving the cleanliness and upkeep of public spaces, ensuring a greener, well-maintained urban environment. This donation aligns with our vision of fostering sustainability, community development, and job creation.
Celebrating 45 Years as South Africa’s First Choice in Steel We are excited to announce that 2025 marks NJR Steel’s 45th anniversary! Over the past four and a half decades, we have grown from a single supplier to a nationwide leader with 26 branches across South Africa. Since our humble beginnings in 1980, we have been committed to quality, innovation, and outstanding customer service. A Legacy of Growth and Innovation This milestone reflects our dedication to excellence and the strong relationships we have built with our employees, customers, and communities. As we celebrate 45 years, we look back on our journey of expansion, diversification, and community impact—and look forward to many more years of success! Strategic Expansion and Diversification NJR Steel has strategically expanded across South Africa, evolving from a single steel supplier to a national industry leader. Our growth has enabled us to serve a diverse customer base, from large-scale industrial and construction companies to small businesses and individual contractors. The 2023 acquisition of Staalbeer Steel Merchants strengthened our footprint, adding three branches and expanding our reach. Today, we employ over 1,300 South Africans, ensuring expert service, top-quality products, and a reliable supply chain. Beyond expanding our physical presence, we have diversified our product range and also sell our own clear view fencing brand with 5 different aperture and security level options called DeFence. In addition, we also introduced lightweight steel trusses as an alternative to wooden trusses with the benefits of lightweight, longevity and prefabrication which is preplanned in accordance with a customer’s specs and with the help of our team of estimators who can visit a customer’s sight and access the needs and costs involved. We continuously seek new solutions to meet our customers’ needs. Expanding into Hardware Retail & Online Sales To provide a complete solution, over the years, NJR Steel has expanded beyond steel supply to include fully stocked steel related hardware stores at all our branches. These stores offer essential tools and accessories, ensuring contractors, builders, and DIY enthusiasts have everything they need in one place. Our hardware stores stock hand and power tools, fasteners, protective gear, welding rods, MIG wire, inverters, grinding and cutting disks, paints, and gate and fencing accessories. We have also introduced our own NJR-branded steel paints, welding rods, gate wheels and fasteners, By integrating hardware retail with steel supply, we offer a seamless shopping experience for all construction needs. Shop Steel Online Our online store further simplifies procurement, allowing customers to browse a comprehensive catalogue with detailed specifications and pricing. The NJR Steel online platform ensures quality steel products are just a click away, streamlining delivery and collection processes. Community Engagement and Social Responsibility Beyond business, NJR Steel is dedicated to uplifting the communities we serve. Through our partnership with Seeds of Africa, we have supported over 229 entrepreneurs in growing their small businesses since 2019. By integrating suppliers like Mokaleng Electrical and Ayoba Steel into our supply chain, we promote sustainable economic development. We also actively support initiatives such as: Children’s Welfare Initiatives – Supplying materials for shelter improvements, such as the new dining area roof for the Lighthouse Children’s Home in Rustenburg. Mandela Day Programs – Engaging in projects that empower local entrepreneurs and foster economic revival. Read and Ride Reading Club (3RC) – Supporting literacy and cycling among underprivileged youth in Durban by providing safety gear, bicycles, and event sponsorships. Flying Eagles Soccer Team – Sponsoring kits for Johannesburg North’s young athletes, fostering sports development and community unity. These efforts reflect our commitment to making a meaningful impact in the communities we serve. Championing Excellence: SAISC Awards Sponsorship NJR Steel is a proud sponsor of the South African Institute of Steel Construction (SAISC) Steel Awards, recognising excellence in the industry. At the 2024 awards, we celebrated the Zululami House project, which showcased exceptional use of light steel frames. This innovative approach resulted in striking vaulted ceilings and open-plan living spaces, demonstrating the versatility of lightweight steel trusses. Ensuring Reliable Supply Amid Industry Challenges Despite industry challenges, including ArcelorMittal South Africa’s decision to wind down its Long Products Division, NJR Steel remains committed to a consistent and reliable steel supply. We have secured sufficient stock to meet demand and are leveraging international networks to source high-quality steel. Our managers and sales teams are ready to assist with tailored solutions for your business needs. Thank You for 45 Years of Support As we celebrate this milestone, we extend our deepest gratitude to our loyal customers, dedicated employees, and supportive partners. Your trust and collaboration have been instrumental in our success. The journey of NJR Steel continues, and we remain committed to our values of quality, reliability, and community engagement. We look forward to many more years of shared growth and success. Thank you for being part of our 45-year journey!
