A poll conducted by the Steel and Engineering Federation of South Africa (Seifsa) has revealed that high demand for medical oxygen has put immense pressure on suppliers and affected industrial supply.
The survey was undertaken within the metals and engineering (M&E) sector to understand the impact of the shortage on their production levels and whether alternative supplies were being sought regarding input supply chains.
Of the 1 600 companies surveyed – all of whom are members of Seifsa through its affiliated associations - 76.92% of the respondents said they had experienced oxygen shortages and had considered alternative supplies in the process.
Several, whose analytical instruments use oxygen, had to alter their inspection regularly to reduce consumption and find alternative supply, in one case at a cost of R4 000 per bottle versus the standard cost of R140 per bottle.
Some respondents mentioned that they were at risk of running out of oxygen within 14 days. Others said the impact had been so severe that they had had to apply for extensions on their projects or stop production altogether.
“Based on the views of the respondents, Seifsa is of the view that the oxygen shortage has, indeed, disrupted industrial production. However, we concur with our respondents who believe that lives need to be saved, hence the supply of medical oxygen should be prioritised,” said Seifsa chief economist Chifipa Mhango.
He added that it was clear that the second wave had placed a strain on sectors heavily reliant on oxygen as a result of the high rate of daily hospital admissions and that strategic interventions and engagements would be required with oxygen suppliers to salvage the crisis.
