The Steel Manufacturers Association of Ghana (SMAG) has given an assurance that prices of steel products will remain unchanged. 

The assurance was given at a meeting held between members of the association and the Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, in Accra last Friday.

The Chairman of B5 Plus Ltd and a member of the association, Mike Thakwani, during the meeting, acknowledged that the steel industry was operating under difficult conditions, but emphasised that manufacturers were committed to ensuring an adequate supply of steel to the market without increasing prices.

He did not discuss the kind of difficult conditions confronting the local steel manufacturing industry, but some local traders have mentioned that the improvement in the strength of the cedi against the dollar and other trading currencies had come with cheaper imports into the Ghanaian market.

Mr Thakwani said the industry appreciated the government’s support, and pledged continued cooperation to advance the “Made-in-Ghana” agenda, stressing the importance of collaboration between the public and private sectors to sustain local manufacturing.

"Despite the current challenges facing the industry, there will be an adequate supply of steel products on the market. At the same time, the minister has assured us that she will look into the challenges confronting the steel industry and provide the needed support so that together we can continue to advance the Made-in-Ghana agenda," he said. 

Supporting economy

The Chairman of the SMAG, Xu Ningquan, also said the association was committed to supporting Ghana’s economy and strengthening local manufacturing.

He explained that, as part of this commitment, steel manufacturers had agreed to maintain current prices help to stabilise the market and contribute to national economic growth.

"The Steel Manufacturers Association in Ghana is committed to supporting the national economy and strengthening local manufacturing. In line with this objective, the association has agreed to maintain current steel prices as a contribution to stabilising the economy and promoting Ghana’s local manufacturing sector," Mr Ningquan said.

Prompt response

In response, the minister commended the steel manufacturers for responding promptly to her invitation and for their decision to maintain the current prices.

She described the move as a significant sacrifice in the national interest, especially at a time when cost pressures existed within the industry.

The minister said while exchange rate movements affected production costs, the dollar was not the sole determinant of steel prices.

She attributed the industry’s decision partly to the relative stability in the macroeconomic environment, crediting the government’s economic management.

"You have decided to keep the prices of steel products the same and, more importantly, make the product available on the market to all distributors and consumers from today. I really appreciate the sacrifice for the country," she said.

Mrs Ofosu-Adjare assured the manufacturers of continued government support to address challenges within the sector, with the aim of keeping prices affordable while allowing the industry to remain competitive and sustainable.

"Government will continue to work with industry to ensure that the problems are resolved so that they can still keep their prices as reasonable as possible," she said.

She also thanked the public for remaining calm amid speculation about possible price increase, and reaffirmed the government’s commitment to working closely with industry players to strengthen local production, support economic growth, and ensure the steel industry continued to play a vital role in Ghana’s industrial development.