Johannesburg – The Department of Trade and Industry (DTI)
says it is implementing measures to protect the steel industry.
The local steel sector has recently been decimated, with
thousands of workers retrenched as companies stopped running furnaces.
This was due to cheap steel being brought into the
country, notably from China.
Last week, ArcelorMittal South Africa said, despite a 10
percent tariff on imported steel products implemented during the year, 1.2
million tonnes came into SA, which it says “reflects the need for safeguard
measures for primary steel manufacturers to address the surge in imports”.
Apparent steel consumption decreased by 3.4 percent as a
result of subdued economic growth.
“Encouragingly, post year-end the authorities approved
the designation of South African steel for use in state infrastructural
projects.”
Read also: ArcelorMittal SA cuts headline loss by R2.78bn
On Friday, the DTI said, since the onset of the global
steel crisis in 2015 characterised by massive oversupply, depressed prices and
increased imports, the Departments of Trade and Industry and Economic
Development have developed and implemented a package of measures to support and
save the industry from the immediate threat of closure and subsequent loss of
capacity.
It says the following measures, among others, are being
implemented by government and its supporting institutions:
1. Increase in the general rate of
customs duty on primary steel products to 10 percent,
2. Downstream support measures
including tariff review on a range of downstream products and the deployment of
rebates,
3. Agreement on a set of
principles for flat steel pricing in SA that is priced appropriately to ensure
that steel-dependent industries are competitive, while at the same time
ensuring that the upstream steel mills remain sustainable
4. Local procurement by government,
and,
7. Participation in the G20 global
forum to address global steel excess capacity
However,
in turn, industry must commit to investments, competitive pricing policies, job
retention and industrial output.
The DTI
says these are important to achieve “a viable, competitive and sustainable
steel industry in SA”.
It adds
compliance is independently monitored and evaluated by the International Trade
and Administration Commission (ITAC) Steel Committee consisting of ITAC
Commissioners, representatives of the downstream and upstream steel industry
and invited government officials.
DTI notes, globally steel is by far the most important input into manufacturing and,
as a result, its interventions are paramount to achieving the objectives set
out in the Industrial Policy Action Plan and National Development Plan.
“A
competitive steel industry that can support investment, increased jobs and
exports remains a key priority for government.”
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