The National Employers’ Association of SA (Neasa) is pushing for the scrapping of the anti-dumping duties on structural steel advocated for by embattled ArcelorMittal SA (Amsa) — saying they are harmful to the steel industry.
SA in December imposed provisional duties of 52% and 9% on structural steel from China and Thailand, respectively, as an investigation into a complaint laid by Amsa unfolded.
Neasa on Wednesday told the International Trade Administration Commission (Itac) of SA that Amsa was being protectionist in calling for anti-dumping duties.
“The factors contributing to Amsa’s downfall may not be attributed to increased imports only. These factors, as per Neasa’s arguments and Amsa’s own admissions, included the competition from highly subsidised mini mills that produce long steel, generally weak economic growth in SA, increased logistics and energy costs and the preferential pricing system for scrap metal,” Neasa said.
“The fact that the imports are not the main cause for Amsa’s material harm was further evidenced by its decision to close its long steel business, even after the implementation of the provisional anti-dumping duties. The only inference that can be drawn is that even if dumping was not taking place, the injury to Amsa would not disappear,” it said.
Amsa in January took a decision to wind down its long steel business — a move that put 3,500 jobs on the line.
The move to mothball its plants in Newcastle and Vereeniging came after discussions with the government failed to produce a desired result for Amsa.
According to Amsa’s latest annual report, Newcastle alone accounted for 34% (more than R10bn) of its total procurement in 2023.
The group’s rail and structural subsidiary, ArcelorMittal Rail and Structural, the sole producer of mainline rail in Sub-Saharan Africa, also faces demise.
Long steel products include rebar, wire rod, merchant bars, rails and sections.
Neasa told Itac the anti-dumping duties may not and should not be imposed, if the local producer of the steel products on which the duties are to be levied as per its application, will no longer be producing said steel products, which will be the case when Amsa closes down the long steel plant.
“Based on the submissions made by employers in the steel downstream, including members of Neasa, coupled with the current state of events surrounding Amsa, logic dictates that Itac has no choice but to scrap the anti-dumping duties on long steel. Whether Itac will make the right decision, however, remains to be seen,” Neasa said.
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