The South African government is extending its tariffs on steel imports from China in a bid to increase the use of local ArcelorMittal-produced steel for public infrastructure projects.
South Africa imposed a 10% import tariff on steel in August last year, the maximum level allowed by the World Trade Organisation (WTO).
ArcelorMittal South Africa was quoted by Reuters news agency as saying government measures had a "reasonable prospect of returning the company to profitability in the medium term”.
The steel-maker saw a sharp rise in share prices, as government’s steel import protection had a greater effect than what was expected, Momentum Wealth senior portfolio manager, Wayne McCurrie, reportedly said.
