The International Trade Administration Commission (ITAC) of South Africa has confirmed it is reviewing the country's steel tariff structure and monitoring steel imports across the upstream, midstream, and downstream sectors.
This review follows a Ministerial directive and comes in response to ArcelorMittal South Africa's (AMSA) recent decision to shut down its long-products business and place its Newcastle operations into care and maintenance.
ITAC's chief commissioner, Ayabonga Cawe, stated that the outcome of this review is expected within this year.
In addition to reviewing the tariff structure, ITAC is actively participating in discussions aimed at finding alternatives to the closure of AMSA’s Newcastle plant.
The commission is particularly focused on regulating scrap metal exports through the Price Preference System (PPS), which it oversees.
In September 2024, ITAC Gazetted a review of PPS guidelines, considering the potential impact of price discounts for both ferrous and non-ferrous scrap metals. ITAC is also investigating several trade remedy applications related to alloy steel coil, rail, and hot-rolled steel products, in response to claims from AMSA that it is facing harmful competition from imported products.
The recommendations from these investigations will be forwarded to the Minister of Trade, Industry and Competition once they are concluded.
Moreover, ITAC, along with other public institutions and departments, has been engaging with AMSA to explore measures that could prevent the closure of the Newcastle mill, which AMSA has deemed necessary due to significant under-utilization. While Cawe welcomed improvements in AMSA's flat business, he expressed disappointment that the efforts made so far had not been sufficient to address the challenges at the Newcastle plant.
He emphasized that decisions on the matter must be based on a comprehensive review of evidence and must adhere to administrative and procedural fairness to ensure an equitable solution.
This ongoing process highlights the importance of balancing the interests of local industries and foreign competition while ensuring fair practices within the sector.
This review follows a Ministerial directive and comes in response to ArcelorMittal South Africa's (AMSA) recent decision to shut down its long-products business and place its Newcastle operations into care and maintenance.
ITAC's chief commissioner, Ayabonga Cawe, stated that the outcome of this review is expected within this year.
In addition to reviewing the tariff structure, ITAC is actively participating in discussions aimed at finding alternatives to the closure of AMSA’s Newcastle plant.
The commission is particularly focused on regulating scrap metal exports through the Price Preference System (PPS), which it oversees.
In September 2024, ITAC Gazetted a review of PPS guidelines, considering the potential impact of price discounts for both ferrous and non-ferrous scrap metals. ITAC is also investigating several trade remedy applications related to alloy steel coil, rail, and hot-rolled steel products, in response to claims from AMSA that it is facing harmful competition from imported products.
The recommendations from these investigations will be forwarded to the Minister of Trade, Industry and Competition once they are concluded.
Moreover, ITAC, along with other public institutions and departments, has been engaging with AMSA to explore measures that could prevent the closure of the Newcastle mill, which AMSA has deemed necessary due to significant under-utilization. While Cawe welcomed improvements in AMSA's flat business, he expressed disappointment that the efforts made so far had not been sufficient to address the challenges at the Newcastle plant.
He emphasized that decisions on the matter must be based on a comprehensive review of evidence and must adhere to administrative and procedural fairness to ensure an equitable solution.
This ongoing process highlights the importance of balancing the interests of local industries and foreign competition while ensuring fair practices within the sector.
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