ITAC imposes safeguard duties on hot-rolled steel products

South African Iron & Steel Institute (SAISI), an industry association, brought an application on behalf of ArcelorMittal South Africa Limited, being the major producer of the subject product in the Southern African Customs Union, for an investigation of remedial action in the form of a safeguard measure against the increased imports of hot-rolled steel products.

Hot-rolled steel is used for the manufacturing of general engineering products such as containers, mining equipment, small and large bore pipes, earth moving equipment, gas cylinders, truck trailers, water tanks, etc. This product is normally used by products merchants, service centres, and fabricators who convert material into pipes and tubes primarily for construction projects. Smaller tubing is used for school furniture, while hot-rolled slit material is utilized for lip channels.

On 23 February 2024, ITAC initiated this investigation through Notice No. 2333 of Government Gazette No. 50164.
The Commission considered all comments, submissions and public hearings and made a final determination that, there were unforeseen developments which led to the increased volume of imports and that the surge in imports was causing serious injury to the SACU industry. The Commission further made a final determination to recommend to the Minister of Trade, Industry and Competition (DTIC) that safeguard measures be imposed and that the Commission be instructed to monitor the prices of the subject products in terms of section 18(a) of the ITA Act.

A safeguard measure can be introduced to protect a domestic industry against, not necessarily unfair, but nevertheless overwhelming foreign competition. The measures can be introduced against an unforeseen surge in imports that threaten to or causes serious injury to a domestic industry. Safeguard measures are temporary measures with timelines to allow a domestic industry to adjust and improve its competitiveness.

A notice to give effect to this decision, was published in the Government Gazette on 02 May 2025.

Please refer to Report 740 for full details. 

ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA