The International Trade Administration Commission (ITAC) of South Africa has imposed safeguard duties on hot-rolled steel products imported into the Southern African Customs Union (SACU), following a finding that surging imports have “caused serious injury to the domestic industry”.
In a notice published on May 2, ITAC said it acted on an application brought by the South African Iron and Steel Institute (SAISI) on behalf of ArcelorMittal South Africa, SACU’s major producer of hot-rolled steel.
The material is widely used to manufacture structural components such as piping, truck trailers, gas cylinders, water tanks and support structures used in the electrification (including substation frames, transformer tanks and cable supports), mining and infrastructure sectors.
ITAC said its investigation found that “unforeseen developments” led to a significant increase in imports and that “the surge in imports was causing serious injury to the SACU industry”.
The commission recommended that safeguard measures be introduced and that it be instructed to monitor prices of the affected products under Section 18(a) of the International Trade Administration Act.
Unlike anti-dumping duties, safeguard measures do not require evidence of unfair pricing. “A safeguard measure can be introduced to protect a domestic industry against not necessarily unfair but nevertheless overwhelming foreign competition,” ITAC said.
“Safeguard measures are temporary measures with timelines to allow a domestic industry to adjust and improve its competitiveness.”
Full details of the decision are outlined in ITAC Report 740.
