Anti-dumping Duties on Structural Steel: NEASA's oral hearing with ITAC.

ANTI-DUMPING DUTIES ON STRUCTURAL STEEL

NEASA’s ORAL HEARING WITH ITAC

Dear employer

In November 2024, provisional duties, of 52% and 9% on structural steel from China and Thailand respectively, were imposed, despite the investigation into the alleged dumping not being completed yet.

This was done despite stringent written objections submitted by NEASA and various other parties.

On 24 February 2025, the International Trade Administration Commission of South Africa (ITAC) heard NEASA’s oral submission against the imposing of anti-dumping duties on structural steel, as applied for by AMSA in September 2024.

On behalf of its employer-members in the steel downstream, NEASA argued that the proposed anti-dumping duties may not be imposed by ITAC if the material cause of injury to AMSA and its operations, is not, in fact, the dumping of the structural steel products – i.e., without a direct causal link between the injury and the alleged dumping, an application for protectionist duties must fail.

NEASA, through expert trade and economic advice argued that AMSA’s inability to survive and continue sustainably, is not only caused by the steel imports from Asia. 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 South Africa, increased logistics and energy costs and the Preferential Pricing System for scrap metal.

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.   

NEASA further emphasised that the anti-dumping duties may not and should not be imposed, if the local producer of the steel products upon 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 will keep employers abreast of developments, as well as of the outcome of the hearing.

For more information

NEASA Media Department

media@neasa.co.za

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