Steel industry in financial distress because of lockdown
CAPE TOWN – The Department of Trade and Industry has warned that the steel industry would exit the coronavirus (Covid-19) lockdown in severe financial distress potential plant closures and job losses.
The department’s Trade and Industrial Policy Strategies (Tips) on Friday said the industry could experience a devastating R1 billion negative cash cost on the five-week lockdown unless the government intervened.
It said the situation would be made worse by the fact that Chinese and Russian were expected to resume their low-price steel offering.
Source: iol.co.za
