South Africa has moved to significantly increase import duties on structural steel products from China and Thailand, in a bid to protect its struggling domestic steel industry from unfair competition.
The decision follows a detailed investigation that found evidence of dumping — a practice where products are sold in foreign markets at prices below their normal value or production cost.
Anti-dumping measures intensified
The new tariffs, announced in a government notice dated 19 March, set import duties on Chinese structural steel at 74.98%, while similar products from Thailand will face a 20.32% levy.
These rates mark a sharp increase from provisional duties introduced in 2024, which stood at 52.81% for China and 9.12% for Thailand.
The International Trade Administration Commission of South Africa (ITAC), which led the investigation, concluded that the imported products were entering the Southern African Customs Union (SACU) market at unfairly low prices, causing material injury to local producers.
The tariffs apply primarily to structural steel used in construction, a critical sector for infrastructure development.
Industry under pressure from imports
Weak demand and global competition
South Africa’s steel sector has faced mounting challenges in recent years, including subdued domestic demand and a surge in imports, particularly from China.
According to data from the South African Iron and Steel Institute, imported steel accounts for approximately 36% of total consumption in the country, with China responsible for nearly three-quarters of those imports.
This influx of lower-priced products has placed significant strain on local manufacturers. Companies such as ArcelorMittal South Africa have already scaled back operations, including closing certain mills, in response to deteriorating market conditions.
The government’s latest move reflects a broader effort to stabilise the industry and preserve local production capacity, which is seen as vital for economic growth and job creation.
Historically, South Africa has used trade remedies such as anti-dumping duties to address similar challenges, particularly during periods of global oversupply in the steel market.
While the tariffs are expected to provide relief to domestic producers, they may also lead to higher costs for construction projects that rely on imported steel.
Trade officials emphasised that the measures were necessary to restore fair competition and ensure the long-term sustainability of the local steel industry.
At the time of publication, there was no immediate response from Chinese or Thai diplomatic representatives regarding the decision.
Source: BusinessDay
