South Africa Chemical And Industrial Gases Manufacuring Market Report 2025 Sasol Leads The Charge In Green Chemical Solutions Amidst Industry Challenges

(MENAFN- GlobeNewsWire - Nasdaq) The South African basic chemicals and industrial gases industry is underpinned by large companies like Sasol, AECI, and Afrox, which are navigating challenges such as declining commodity prices, demand shifts, and decarbonization pressures. This report highlights Sasol's role in driving sustainable solutions through green hydrogen and biofuel initiatives. Market trends indicate growth in advanced materials and sustainable transport. However, supply chain vulnerabilities and fluctuating feedstock prices pose ongoing challenges to the sector's profitability and growth.

Dublin, Sept. 23, 2025 (GLOBE NEWSWIRE) -- The "Manufacture of Basic Chemicals, Other Chemicals and Industrial Gases in South Africa 2025" report has been added to ResearchAndMarkets's offering.

This report on the manufacture of basic chemicals, other chemicals and industrial gases in South Africa includes information on the size and state of the industry, such as demand, feedstock and chemicals supply, depleting gas reserves, production capacity and sales. It includes information on notable players such as Sasol which dominates the market, other large integrated companies, as well as corporate actions, regulations and influencing factors such as environmental issues and innovations.

There are profiles of 24 companies in the industry including Sasol, AECI, Afrox, Foskor, Pelchem, Shell Downstream, Omnia and NCP Chlorchem.

Introduction

• South Africa's basic chemicals industry is dominated by large, integrated companies, anchored around oil, coal mining and natural gas feedstock supply.
• The industry is centred around Sasol which is the sole or main supplier of many basic and intermediate chemical products.
• Pricing and demand are affected by international trends, geopolitics, and long-haul supply chain dynamics.
• The global industry is widely held to be oversupplied.
• Declining chemical feedstock commodity prices have contributed to downward pressure on margins and sales volumes.
• The industry is focused on cash generation and debt reduction, while there is evidence of a slowdown in capital expenditure and some asset disposals.
• Decarbonisation regulations require costly technology updates and provide opportunities in low-emission production.

Market Trends

• Companies are identifying opportunities in high growth areas of advanced materials, electronics, mining chemicals, health, sustainable transport, green hydrogen, and sustainable fuels.
• Companies are shifting towards higher margin commodity products and speciality chemicals.
• Elemental and industrial gas suppliers have experienced growth.
• New feedstock sources are emerging.
• Sasol is making progress with sustainable chemical solutions, green hydrogen production, refining of biofuels, piloting sustainable aviation fuel production, and piloting sustainable road transport fuels.
• Several projects are underway to secure natural gas supply to South Africa, while Sasol has offered to push out the suspension of supply by another year.

Market Opportunities

• Green hydrogen and green ammonia production.
• Mining chemicals.
• Supply to the African continent.

Market Challenges

• Commodity prices are declining which is affecting revenue of commodity chemical manufacturers.
• Decarbonisation is expensive.
• Feedstock supply insecurity, particularly for natural gas.
• The chemical industry is very dependent on the performance of the mining industry, which has not grown substantially in recent years.
• Vulnerability to supply chain disruptions.
• Weak demand.

Market Outlook

• Sasol is mothballing three production units while it focuses on cost cutting, cash generation and selling higher margin products.
• There is tepid demand and oversupply of product.
• A recovery in China's economy will be key to absorbing supply.
• Uncertainty concerning the security of natural gas supply is affecting the industry's outlook.
• Pressure for decarbonised chemical production is intensifying.

Key Topics Covered:

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain
2.2. Geographic Position
2.3. Size of the Industry

3. LOCAL
3.1. State of the Industry
3.2. Key Trends
3.3. Key Issues
3.4. Notable Players
3.5. Trade
3.6. Corporate Actions
3.7. Regulations
3.8. Enterprise Development and Social Development

4. AFRICA

5. INTERNATIONAL

6. INFLUENCING FACTORS
6.1. Unforeseen Events
6.2. Economic Environment
6.3. Labour
6.4. Environmental Issues
6.5. Technology, R&D, Innovation

7. COMPETITIVE ENVIRONMENT
7.1. Competition
7.2. Ownership Structure of the Industry
7.3. Barriers to Entry

8. INDUSTRY SUMMARY

9. OUTLOOK

10. INDUSTRY ASSOCIATIONS

COMPANY PROFILES

• AECI Ltd
• African Oxygen (Pty) Ltd
• Air Liquide (Pty) Ltd
• Air Products South Africa (Pty) Ltd
• BASF South Africa (Pty) Ltd
• Brother Cisa (Pty) Ltd
• Buckman Laboratories (Pty) Ltd
• Clariant Southern Africa (Pty) Ltd
• DOW Southern Africa (Pty) Ltd
• Dry Ice International CC
• Engen Petroleum (Pty) Ltd
• Evonik Peroxide Africa (Pty) Ltd
• Foskor (Pty) Ltd
• Gold Reef Speciality Chemicals (Pty) Ltd
• NCP Chlorchem (Pty) Ltd
• Omnia Holdings Ltd
• Orion Engineered Carbons (Pty) Ltd
• Orthochem (Pty) Ltd
• Pelchem (Pty) Ltd
• Richbay Chemicals (Pty) Ltd
• Rolfes Holdings (Pty) Ltd
• Sasol South Africa Ltd
• Shell Downstream South Africa (Pty) Ltd
• Sidewinder Dry Ice And Gas (Pty) Ltd

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