We see continued trouble on the horizon
for South Africa's metals industry, which is increasingly beset by low output
prices, rising energy costs, and further organized labour action. Metals
consumption growth will rise faster than production growth, due to solid demand
growth from the autos sector. Due to production weakness, we expect increased
imports in the coming quarters, as investment in South African production
facilities will be held back by the glut of metals, particularly steel, on the
world market.
We expect metals consumption will track
broader economic growth in South Africa, which we anticipate to be slow but
steady with a modest recovery expected over coming years. We see autos
production growth, which we currently forecast at 2.9% on average per annum
from 2014 through 2018, as a key driver of metals consumption. Our forecast for
the construction and infrastructure industries to see average annual growth of
3.9% and 3.7%, respectively, over the same period should also support the
domestic metals industry.
Spanning Over 58 pages, “South Africa Metals Report Q3 2014” report covering the SWOT, Industry Forecast, Regulatory
Development, Competitive Landscape, Company Overview, Methodology.
Know more about this report at: http://mrr.cm/ZGZ
Find all Industry and
Manufacturing Report at:
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