Increased competition for SA gas markets


The industrial gases market in South Africa is feeling the pressure of the current downturn and uncertainties plaguing global trade, amid indications that competition in the gases market in the country is intensifying.

The price of steel is down 30-40%, while vehicle exports have collapsed 40% and in the recently announced national Budget, Corporate Tax will remain the same while the fuel levy will increase – thus putting pressure on distribution costs.

The country has run a trade deficit for five successive years and confidence among business leaders is at a five year low, according to a recent survey by the South African Chamber of Commerce and Industry.

On the upside, government has reconfirmed it’s commitment to the multi-billion rand infrastructure investment program and commodity prices are believed to be bottoming out. Stockpiles meanwhile, are being run down, which is likely to cause a short-term upswing in demand.

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