Steel on the Move: Why 2025 Feels Like a Roller-Coaster for South Africa’s Hauliers

Picture the N12 near Potchefstroom on a Monday morning. Tankers cruise past on one side, flat-beds loaded with steel coils on the other. Every driver’s got one eye on the fuel gauge, the other on the road. Steel is still moving but behind the scenes, the industry’s facing one of its biggest shake-ups in years.

And if you’re running trucks, you’re feeling it. Fewer loads, tighter rates, and rising diesel costs, it all hits your bottom line.

Let’s break it down in plain terms.

Big mills, big moves – ArcelorMittal’s long-steel saga

Back in February, ArcelorMittal South Africa (AMSA) shocked the market when it announced plans to shut down its long-steel operations; things like rail, rebar, and reinforcing rod by April. Around 3 500 jobs were suddenly on the line. The reason? Demand had dropped, electricity costs were sky-high, and cheap imports were undercutting local prices. reuters.com

A last-minute R1.7 billion loan from the Industrial Development Corporation gave AMSA a short-term lifeline, pushing the shutdown to August. But even with that delay, the damage was done. Many customers had already started moving to mini-mills or bringing in steel from overseas and that shift has real knock-on effects for transporters:

  • Fewer long-distance loads out of Newcastle
  • More short-haul scrap deliveries to local mini-mills
  • And tighter profits per load

It’s a chain reaction, and hauliers are feeling it first-hand. reuters.com

Output down, imports up – the numbers don’t lie

South Africa’s steel output dropped by 8% in the first quarter of 2025 compared to the same time last year. steelradar.com Local producers point fingers at power outages, high port fees, and unreliable rail services. At the same time, SAISI’s May update showed a rise in finished-steel imports (mostly hot-rolled coil and light sections) which has put even more pressure on local pricing. saisi.org

For transporters, the picture’s a bit messy. More imports coming through ports like Durban and Coega can mean extra trips from port to warehouse. But with local production slowing down, there’s less bulk steel moving inland. One week your trucks are running non-stop. Next, you’re chasing customers for return loads.

Scrap wars and the green-steel pivot

Mini-mills that use electric-arc furnaces rely heavily on scrap metal, so they welcomed the government’s decision to extend export restrictions. The move helps keep more scrap in South Africa. ITAC has said its full review of the pricing rules will wrap up before July, and it’s likely we’ll see even tighter controls going forward. itac.org.za

So why does that matter to transporters? Because scrap doesn’t move like iron ore, it’s picked up in bits and pieces from all over. That means:

  • More short-distance trips from demolition sites to scrap yards
  • Longer queues at weighbridges, especially near regional processors
  • Tighter checks to make sure loose, awkward loads are properly secured

If you’ve only been running coils or steel bars, now might be a good time to consider scrap. It’s a way to fill those quiet weeks but just make sure you’ve got the right gear: strong chains, good covers, and patience at the weighbridge.

Rails creak, roads creak louder

Transnet’s own figures show bulk rail volumes have dropped by 7% since 2019. Their long-term plan? Allow private companies to run freight on state-owned rail lines by 2027. It’s a bold idea but definitely not a quick fix.

For now, the reality is simple: more minerals and metals are leaving the rail yards and piling onto trucks. According to one consultancy, that shift is adding around R1 billion a day to national logistics costs. oliverwyman.com

So, what does that mean for transporters?

  • Longer trips: Steel plate that used to travel partway by rail from Newcastle to Gauteng now goes the whole way by truck.
  • Heavier loads: More 30-tonne coils per trailer means extra stress on brakes, tyres, and suspension.
  • Busier roads: The N3 corridor is often packed with steel haulers by midweek, almost like a moving conveyor belt.

Until rail gets back on track, road transport is the fallback. Yes, it’s good business but it comes with harder work, higher costs, and more wear on your vehicles.

Where margins can still breathe

Fuel timing counts
Diesel prices along the N1 can swing by up to 40 cents per litre in a single day. A quick check on your diesel pricing systems, like TFN’s live pricing route planner, before you queue up can save you thousands, especially if you’re running multiple trucks.

Don’t take chances on overnights
Steel’s valuable, easy to stack… and just as easy to steal. Park at proper truck stops with fences, cameras, and security. One theft claim can wipe out a month’s worth of fuel savings in one go.

Be smart about your return loads
You might haul premium coil on the way out, but don’t return empty. Look at scrap bundles, off-cuts, or even building materials. It’s not glamorous freight, but it keeps your wheels moving and your books balanced when mill volumes slow down.

Keep an eye on your tyres
Steel coils ride low but hit hard. Their weight sits dense and tight. If your tyre pressure’s off, you’ll cook the rubber before you reach Bloem. A digital pressure monitor may not look fancy, but it can save you from sitting on the roadside waiting for a breakdown team.

Looking ahead – cautious optimism on the horizon?

2025’s been tough on every part of South Africa’s steel supply chain:

  • Big mills are cutting back, while smaller, more flexible mini-mills are picking up the slack.
  • Import volumes keep changing with the rand.
  • Scrap regulations are tightening.
  • And while there’s talk of opening up rail to private players, that’s still years away.

But it’s not all doom and dust. There’s movement and opportunity. Battery-grade manganese plants, planned upgrades at key ports, and the government’s R940 billion infrastructure rollout could all drive fresh demand for steel if those projects actually get going.

If you’re running a fleet, this is your window. The hauliers who adapt, who switch lanes, rethink load types, and track diesel smarter: will be the ones who win.

So, next time you’re parked outside Vanderbijlpark waiting on a load sheet, don’t get discouraged. The steel game isn’t falling apart, it’s just shifting under your feet. Stay sharp with your routes, keep your fuel strategy tight, and watch the bigger picture. Not just the price board.

Steel might be forged in fire, but profits are forged in planning.

Ready to fuel smart and save big? Sign up with TFN today and experience the difference—where fuel price protection meets real savings.

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