The South African government raised import duties on certain steel products to between 10% and 30% in order to protect the domestic steel sector against increasing import pressure. Under the regulation published on May 15, flat-rolled iron and non-alloy steel products, as well as bars, wire rod, pipe, and tube products, were included within the scope of the new tariffs. In addition, the 7% customs duties applied to heavy section products from China and Indonesia were increased to 10%, while regional authorities stated that imports of sheet coils from China had become almost impossible.
Ayabonga Cawe, Chief Commissioner of the International Trade Administration Commission of South Africa (ITAC), stated that the sector is facing a crisis that “requires urgent intervention.” In the ITAC report, it was emphasized that global steel oversupply, weak demand, high energy and logistics costs, dumped imports, under-invoicing, and customs irregularities are placing serious pressure on the sector. Cawe stated that some steel products are entering South Africa at prices even below local production costs.
The Commission noted that rapidly increasing production capacity in countries such as China, India, and Türkiye in recent years has created oversupply in global markets, while also drawing attention to the European Union’s tightening safeguard measures. ITAC recommended raising duties on many products to the upper limits permitted by the World Trade Organization in order to protect the domestic industry. It was also reported that some sector representatives demanded additional duties of up to 65%.
On the other hand, ITAC proposed expanding duty exemption and rebate mechanisms to ensure that imports continue under competitive conditions for products not manufactured domestically. It was stated that heavy structural steels, rail products, certain pipes and wire rods, and some sheet products used in the white goods sector are being evaluated within this scope. The Commission also brought forward the establishment of an import licensing and monitoring system against customs fraud and tariff circumvention practices.
According to data from the South African Iron and Steel Institute, imports account for approximately 36% of the country’s total steel consumption, of which 73% comes from China. Steel production in the country has declined significantly over the past 20 years, with output levels that exceeded 9 million tons in 2005 now falling to less than half of that level. Employment in the sector has also declined substantially, while authorities emphasize that the current measures are critical for restoring the competitiveness of the domestic industry.
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