South Africa Initiates Steel Tariff Review in Response to Mill Closures

South Africa, confronting the potential shutdown of two steel mills by ArcelorMittal SA that are vital for the local manufacturing sector, has initiated a review of import tariffs on metals and is exploring additional strategies to safeguard the industry.

A division of the nation’s Department of Trade, Industry and Competition has taken legal action toward increasing tariffs by issuing a formal request for public feedback on the possibility of raising tariffs on imported steel, while also implementing measures aimed at reducing the expenses of steel raw materials such as iron ore, scrap, and coking coal.

“The South African industry is grappling with various challenges, including an influx of low-cost, and often inferior, imports,” stated the International Trade Administration Commission in the government gazette on Wednesday.

Read: Steel cuts jeopardize SA’s R4.78tr construction initiative

The review occurs while the government is engaged in negotiations with the local branch of ArcelorMittal, which has announced plans to close two mills that produce critical products for the local automotive, mining equipment, and construction sectors. Among its grievances is a surge of inexpensive steel imports from China.

The unit, known as Itac, has also suggested the implementation of an import surveillance system to prevent evasion of import duties and to combat fraudulent practices related to steel imports. Moreover, it has proposed that importing certain grades of steel will require applications for import permits.

Read: Tycoon Mittal, Ramaphosa confer over steel challenges

The South African review is happening concurrently with the administration of US President Donald Trump imposing tariffs on steel and other imports, which may drive metal producers to explore alternative markets, including South Africa.

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