South Africa has introduced higher customs duties on certain steel products, ranging between 10% and 30%, to protect its struggling domestic industry amid weak demand and rising imports led by China.
ArcelorMittal South Africa and other companies have shut down some steel plants, and the country’s International Trade Administration Commission (ITAC) recommended last year that the government take emergency measures to defend the sector, proposing tariffs starting at 10% on steel products.
The duties announced in a government notice dated 15 May will apply to products such as flat-rolled iron or non-alloy steel, as well as bars, reinforcing rods, tubes, and pipes. Previously, South Africa applied tariffs ranging from zero to up to 15% on these products.
“We hope this decision provides the domestic industry with the necessary space to adjust in a way that allows investment in its capacity,” ITAC chief commissioner Ayabonga Cawe said on Tuesday.
Tariff rebates for processors using products such as heavy structural steel and flat steel used in electronic equipment have also been adjusted, Cawe added.
According to the official, the tariff adjustments will not affect preferential treatment granted to certain geographical regions.
Imports account for about 36% of South Africa’s total steel consumption, with China accounting for 73% of imports, according to the South African Iron and Steel Institute.
South Africa also imposed high customs duties in March on structural steel imports from China and Thailand after identifying signs of dumping.
Source: Reuters
