South Africa has imposed substantial anti-dumping tariffs on structural steel from key trade partners China and Thailand to shield the struggling local industry.
Imports from the two countries surged 19-fold in the 2023/24 financial year, intensifying pressure on ArcelorMittal South Africa (Amsa), particularly its rail and structures division, Amras, the sole mainline rail producer in the Southern African Customs Union (Sacu).
Business Day reported on Friday that Trade, Industry and Competition Minister Parks Tau had endorsed the International Trade Administration Commission of South Africa (Itac) recommendation to apply definitive anti-dumping duties for five years.
Itac’s investigation revealed 28 800 tonnes of structural steel flooded the market in 2023/24, with China supplying 65%. Chinese imports now face a 74.98% tariff, while Thai imports attract 20.32%, effective since Thursday.
The net effect of the dumping was that it undercut local industry prices by 20%, contributing to Amras reporting a loss amid its inability to raise prices.
The pushback follows Amsa’s announcement of plant closures in Newcastle, Vereeniging and Mpumalanga last year, risking up to 3 500 jobs, as talks continue with government and the Industrial Development Corporation to salvage its long steel business.
Itac noted imports’ cumulative market share had risen six-fold in 2022/23 and 19-fold in 2023/24. Lower employment at Amras reflects the adverse impact of cheap imports on the Sacu region.
Itac also imposed five-year duties on certain aluminium-zinc coated flat-rolled products from China (6.99%–47.92%), Japan (44.95%) and Taiwan (23.3%).
Recent IDC trade data shows South Africa imported R304bn from China versus R164bn in exports from January to September.
