Poor stainless-steel consumption drives change in strategy

Steel mill Columbus Stainless notes that apparent yearly consumption of stainless steel continues to decline in South Africa, with Columbus Stainless senior local sales manager Nocwaka Ntshangase explaining that this, “unfortunately, is a reflection of the lack of much-needed economic growth in South Africa”.

Ntshangase adds that, as a consequence, more work needs to be done to grow consumption for South African-produced stainless steel beyond South Africa’s borders.

She notes that improved stainless-steel demand in countries such as those in Europe has helped to improve Columbus’ production rate, however, the effect has been limited given the restrictions on exports imposed by trade measures.

Consequently, Columbus’ strategy is aimed at finding “niche” export markets.

Ntshangase explains that the impact of trade tariffs for producers exporting to overseas countries, particularly in Europe, cannot be avoided. This further entrenches the company’s need to focus on “niche” markets, where tariffs or duties on specific products are unlikely.

She points out that, “the 25% tariff in the US and the out-of-quota tariff of 25% in Europe have a significant impact on our business, as it restricts what and how much can be sold in these markets”.

Moreover, Mexico is following suit with a 25% duty that adds to “an already challenging environment”, according to Ntshangase.

She notes that Columbus Stainless does what it can to function within these restrictions but hopes that the government can provide or negotiate a sustainable solution for the South African industry.

Meanwhile, there are persistent efforts around market development initiatives that are aimed at increasing demand for stainless steel in the domestic market.

“With a melting capacity of a million tons, Columbus has sufficient capacity to accommodate existing or expanding demand in the coming years,” emphasises Ntshangase.

Columbus Stainless continues to respond to market needs with the introduction of its new grade variations to suit specific market and application requirements.

The company introduced temper rolled 301L with high strength and corrosion resistance for passenger rail cars, as well as grades such as 436 and 444, which ensure longer life in automotive and water handling applications.

For higher temperature applications, type 1.4841 or 310Si and 347 are now available. Additionally, the company’s work to improve the ‘workhorse’ 3CR12 utility steel grade by adding a high-strength version – the 3CR12HP400 – has allowed it to cater to more “demanding” applications.

Columbus also offers a limited range of carbon steels, in addition to its traditional range of stainless steels. Type S355 and SAE 1008 are available in versions suitable for galvanising or general use.

A hard-wearing grade and higher strength – up to S550 – is in development and will be ready for the market imminently.

Moreover, the company is supporting research and development projects at local universities and assisting in keeping the curriculum up to date. Its in-house training curriculum is also being updated owing to new developments in the market.

Ntshangase concludes that Columbus Stainless is very focused on market development in South Africa, as well as exploring new export opportunities, adding that the company’s flexibility in product development helps it to provide products and solutions that the country, and the rest of the globe, needs.