SAISI Urges Immediate Action: Anti-Dumping Duties Needed to Curb Unfair Trade Practices and Restore Industry Confidence

The South African Iron and Steel Institute (SAISI) expresses deep concern over the decision by the International Trade Administration Commission of South Africa (ITAC) not to impose provisional anti-dumping duties on hot-rolled steel imports from China, Japan, and Taiwan—despite ITAC’s own preliminary findings confirming that dumping is occurring, causing material injury to the SACU steel industry, and that a clear causal link exists.

The application—brought by ArcelorMittal South Africa and supported by Columbus Stainless—presented strong evidence of significant injury from dumped flat-rolled steel products, classified under tariff sub-headings 7208.10 to 7225.40. ITAC’s preliminary determination, released on 19 February 2025, validated these claims. However, the Commission has opted not to impose provisional duties on the basis that a safeguard investigation is underway and nearing finalisation.

SAISI strongly asserts that this decision undermines the intent of South Africa’s trade remedy framework. Anti-dumping duties and safeguard measures are fundamentally distinct instruments, each with its own legal basis, purpose, and scope. Anti-dumping duties specifically target unfair pricing practices, while safeguards address import surges regardless of price. Delaying anti-dumping measures pending the outcome of a safeguard investigation risks allowing harmful trade distortions to persist unchecked.

Adding to the concern is the fact that provisional safeguard duties lapsed on 20 January 2025—before final safeguard duties could be imposed—leaving the domestic industry completely exposed to unfair import pressure. This policy gap has created market uncertainty and emboldened foreign exporters to increase volumes and deepen underpricing, all while domestic producers face escalating losses without any form of trade relief in place.

This is deeply troubling, particularly given South Africa’s strong domestic production capabilities in hot-rolled steel. ArcelorMittal South Africa operates large-scale hot-rolled steel production at its Vanderbijlpark facility, while Columbus in Middelburg supplies hot-rolled steel for some industrial markets. Moreover, over R5 billion has been invested in a new state-of-the-art steel plant at Scaw Metals in Ekurhuleni, reflecting confidence in the country’s manufacturing potential and industrial policy direction. It is vital that this capacity is fully utilised and protected from unfair competition.

Other countries have responded more decisively. Vietnam, for example, recently imposed provisional anti-dumping duties of up to 27.83% on hot-rolled coils from China to shield its domestic steel sector from injury. South Africa must not lag behind in defending its own industry from predatory trade practices.

SAISI reiterates its position that provisional anti-dumping duties should have been imposed without delay. They serve as a critical interim tool to halt further injury during the investigation period, restore fair competition, and signal government’s commitment to supporting domestic industrial development.

We call on ITAC and the broader trade and economic policy community to act urgently to close the protection gap and ensure that dumped imports do not continue unchecked. A coordinated and timely trade response—one that recognises the distinct and complementary roles of anti-dumping and safeguard measures—is essential to restoring stability, rebuilding investor confidence, and securing the future of South Africa’s steel value chain