South Africa is raising import duties on a wide range of steel products

South Africa has imposed higher import duties on certain types of steel products (ranging from 10% to 30%) to protect its domestic steel industry. This was reported by Engineering News.

This move follows a comprehensive review of steel tariffs conducted by South Africa’s International Trade Administration Commission (ITAC).

The announced duties will apply, in particular, to a wide range of flat-rolled products, electrical and alloy steel (10%), welded and seamless pipes and fittings (15%), and certain types of rebar (30%).

The changes to the tariff schedule were made in accordance with Section 48 of the Customs and Excise Act and cover imports from countries that do not have a trade agreement with South Africa. Thus, this excludes steel imports from the UK, the EU, as well as countries that have signed the African Continental Free Trade Area agreement and the European Free Trade Association.

In an interview with the publication, ITAC Chief Commissioner Ayabonga Kave emphasized that the changes to the tariff schedule were published alongside discount measures for which importers can apply using the standard review procedure.

As Bloomberg notes, last year steel production in South Africa fell to approximately 4.5 million tons from 9.7 million tons in 2006. Local producers are struggling to compete with cheaper Chinese imports while facing rising electricity and logistics costs, as well as an economic slowdown.

In particular, ArcelorMittal South Africa has closed two flat-rolled steel production facilities and a mine in the country. The company still operates a plant in Vanderbeilpark, which produces steel sheets and other products, and has idle capacity in two other cities.

As a reminder, in March of this year, South Africa imposed high anti-dumping duties on imports of structural steel from China and Thailand after finding evidence of dumping.