The South African government has put an end to the expectations of steel importers regarding the introduction of protective duties on imports of hot-rolled coils and thick sheets by introducing a rate of 13% starting in May. 1
An official document issued on behalf of the country's Finance minister. Enoch Godongwana confirmed his new duties today (May 2). The South African International Trade Management Commission launched an investigation into the imposition of protective duties on various types of hot-rolled flat products on January 17, three days after the expiration of the 200-day period of the previously effective 9% duty.
As well as hot-rolled coils and sheets, some galvanized products are also subject to a new duty in addition to the existing import duty of 10%. However, an official government document published today lists a number of countries where the new tariffs do not apply.
MEPs steel market analyst Stuart Gray said that despite the clarity of the new South African protective duty, apartment buyers in the country have become retreating from the market.
"With the increase in imports, the change in guarantees and the current wait for the outcome of the ongoing anti–dumping investigation," they added, "the current uncertainty about global trade includes an element of fear," he said.
"The anti-dumping investigation of coil and plate imports proposed duties of 72% on Chinese-origin material, 24% on imports from Japan-24% and 30% on imports from Taiwan. Many South African buyers are currently looking for alternative sources of import supplies. However, respondents from the European Parliament say that interest in imports is currently very low due to continued uncertainty about possible tariffs and duties."
A study conducted for the April issue of the European Parliament's Emerging Steel Market Survey. It turned out that in recent weeks, the South African steel market has been "flooded" with imports of flat rolled products. This led to an increase in stocks and a decrease in demand.
Despite the introduction of new protective duties on hot-rolled coils and thick-rolled products, the South African International Trade Commission is also conducting a comprehensive review of the existing import tariff structure for all steel products. The scope of the investigation includes both tariff and non-tariff measures, such as the use of import permits. Public consultations on the proposed measures were completed in April16.
- Regular reviews of the South African steel market are included in the Emerging Markets Steel Market Survey prepared by MEPs. The monthly publication contains information on steel prices, price indices, and market prices.
