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Steel tariffs risk supply shortages, SAISC warns

Industry organisation, the Southern African Institute of Steel Construction (SAISC) has raised concerns about the unintended consequences of the recent implementation of antidumping tariff measures on selected steel imports, as published by the International Trade Administration Commission of South Africa (Itac) on March 20.

Steel tariffs risk supply shortages, SAISC warns

The SAISC has recommended that consideration be given to a phased or delayed implementation of the tariffs, allowing the market to adjust without disrupting supply chains or ongoing projects.

“This is not simply a trade issue, it is a supply chain and industry sustainability issue,” adds steel industry association Steel Tube Export Association of South Africa (Steasa) CEO Keitumetse Moumakoe.

“A balanced approach is required to ensure that while local industry is supported, the market remains sufficiently supplied with the materials needed to deliver on infrastructure and economic development.”

Industry feedback indicates that steel merchants and service centres are already cancelling or delaying orders in response to the sudden implementation of tariffs. At the same time, the organisation says certain locally produced steel products are no longer available at previous volumes.

“This creates a real risk of supply shortages in the market, particularly in specialised sizes and specifications not readily available locally,” says SAISC CEO Amanuel Gebremeskel.

“If not carefully managed, these measures may increase project costs, delay infrastructure delivery, and reduce the competitiveness of South African exports – outcomes that run counter to the intent of supporting a stable and competitive local steel industry.”

Beyond supply concerns, the SAISC emphasises, the long-term sustainability of the steel industry depends on more than trade measures alone.

“Quality, traceability, and compliance across the value chain are becoming increasingly critical as supply patterns shift,” says Gebremeskel.

To address this, the SAISC will launch a Quality Certification Programme this year to strengthen confidence in both locally produced and imported steel.

“The programme is designed to support verification, traceability and responsible specification across the value chain, ensuring that quality becomes a defining factor in procurement, not just price.”

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