Abstract
M.Phil. (Natural Economics)
Due to the overwhelming influence of gold on the national economy
of South Africa, the importance of the other mineral resources are
often underestimated. South Africa is the largest exporter of metals
essential to the modern World industry - metals such as chrome, manganese
and vanadium. Our vast reserves of these and other ferrous
metals might yet prove to provide this country with substantial political
and economic powers in years to come.
The importance of the availability of ferrous metals for the continued
existence of the modern global civilization is not always
realised. These metals, in the form of various steels and other
alloys, form an integral part of our daily lives in modern communities.
This important role and the numerous problems faced by the
global ferrous metals industry provided me with a challenging field
of study.
The phenomenon of cyclical volatility is inherent in mineral commodity
markets and is eminently present in the markets for steel and
related alloys, due mainly to the sensitivity of these markets to
general economic welfare. In turn, and due to the derived demand
relationship that exists between these metals and steel, the ferrous
metals are particularly susceptible to economic prosperity and
depression. More often than not, a period of economic prosperity is
characterised by ferrous metal supply shortages, while excess supply
is typical during periods of economic recession.
Interest in the study of the complexities of ferrous metal markets
was kindled whilst in the employ of the Minerals Bureau of the
Department of Mineral and Energy Affairs.