The International Trade Administration Commission of South Africa (Itac) confirms that it has recommended increased protection on several downstream steel productsand that it is also considering recommending duties on a range of other value-added steel products in future.
Trade and Industry Minister Dr Rob Davies reported recently that he had signed off on the duties on downstream steel products as part of a “whole-value-chain approach” to supporting the domestic steel industry, which was being rocked by cheap imports as a result of a “global glut” of steel.
Itac recommended that tariffs be increased on welded link chains, grinding media balls, fasteners and certain wire products to bound rates allowed for under South Africa’s commitments to the World Trade Organisation.
Further tariffs are being considered for other downstream products including roofing products, tubes and pipes, appliances, prefabricated buildings and stranded wire, as well as ropes cables and gabion wire netting.
Itac communications manager Thalukanyo Nangammbi confirms that the investigations into the introduction of safeguard duties for hot-rolled coil (HRC) and cold-rolled coil (CRC) are in the final stages.
Davies stresses that government is aware that downstream industries, and not only the primary sector, are under pressure from cheap imports.
However, he says government will not countenance the closure of what remains of the domestic upstream sector, despite objections raised to further primary-steel protection by some downstream manufacturers.
Davies says government has, instead, adopted a “whole value-chain approach so that we reduce the number of conflicts that there are between upstream and downstream”.
