BSi Steel is a South African group of companies focused on the sourcing, processing, stocking and distribution of a wide range of mild (carbon) steel products. BSi Steel shares are available to buy on the AltX of the Johannesburg Stock Exchange (JSE). With headquarters in Johannesburg, the company also has strong ties with Mozambique, Botswana, Zimbabwe, Namibia, Kenya, Zambia, Tanzania and the Democratic Republic of Congo.

SA Trading (previously known as Bulk Sales) was an early division which eventually led to the founding of BSi Steel in 1985. The division supplies large tonnages where volume and price are key.

Meanwhile, the African Exports division has a history of trade into Africa since 1988, and prides itself on seamless logistics which enable it to deliver by air, sea or land. BSi Steel’s portfolio covers the full spectrum of steel products, including long products, flat products, tubing products, cold formed sections, roof products, plates and tubing for sale to a wide spectrum of clients.

The company has a JSE market cap of R300 million, but the live online stocks chart shows that BSi Steel share price has been severely impacted by a global decline in the steel trade.

Having enjoyed strong profitability throughout its history, BSi Steel was then severely impacted by tough steel trading conditions in South Africa and its export markets (particularly Zimbabwe and Zambia).

Labour unrest in the platinum and metal industries, as well as an oversupply of steel products and an influx of cheap Chinese exports, have all put pressure on the group and resulted in a significant restructuring involving business closures and retrenchments. BSi has however managed to maintain tonnage output in this time and increase market share in a declining market. Significantly reduced operating costs have helped the company stay afloat. The group’s latest financial data highlights that revenue has remained flat over the past two years, with BSi Steel share price falling and after-tax profit registering a drop from over R36 million in 2014 to just over R2 million in 2015.

The forecast for the steel industry still looks grim in the short term, but BSi’s leadership team believes that the restructuring process has put it in a strong position to deliver optimal performance.

Through restructuring, BSi has established a more efficient and effective operating platform today, and the focus for the short-term will be on improving margins, with less of a buy in to tonnage growth. Although profits and BSi share price have dropped, BSi is still a profitable company, which is more than many of its sector peers can say.

BSi is largely dependent on external economic factors in order to drive its growth, and the prospects for the steel industry are set to remain constrained in the short to medium-term. Steel is understandably not a popular industry to buy into at present, so investors will not find BSi Steel shares a particularly attractive purchase.

Materials

Iron & Steel

Steel Producers

We have made it simple to buy JSE listed firm shares online. The easiest way to buy BSi Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in BSi Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
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