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| Structural steel |
New Tariffs Aim to Protect Domestic Steel Producers
South Africa has increased anti-dumping duties on structural steel imports from China and Thailand to 74.98% and 20.32%, respectively. The International Trade Affairs Committee (ITAC) confirmed these measures after finding that imports were sold below fair market value. Meanwhile, the tariffs will remain effective for five years, aiming to stabilize the domestic steel industry.
The domestic steel sector, including ArcelorMittal South Africa, has struggled with low local demand and a surge of cheap imports. As a result, some plants temporarily ceased operations. The higher duties are expected to restore market share, encourage reinvestment, and protect employment. Imports currently account for 36% of total steel consumption, with 73% sourced from China.
In contrast, similar anti-dumping measures are being adopted globally. Brazil recently imposed tariffs on Chinese CRC and HDG steel for five years, reflecting a wider trend of protecting local producers from unfairly priced imports. Therefore, South Africa’s move aligns with international trade enforcement and safeguards local metal production.
ScrapInsight Commentary
The new duties may increase domestic structural steel prices, benefiting South African producers while limiting cheap import penetration. Investors should monitor potential shifts in regional scrap steel demand, as higher local production could drive recycled steel usage and reinforce circular economy initiatives.
