South Africa’s trade regulator has warned that reviving demand rather than intensifying policy disputes is key to stabilising the country’s struggling steel sector.
The International Trade Administration Commission (ITAC) says growing friction among industry players risks further destabilising the market, as debates over tariffs and policy interventions escalate.
This comes amid renewed pressure from ArcelorMittal, which is calling for the scrapping of a 20% export tax on steel scrap. The company argues that the levy disproportionately benefits smaller mini-mill operators that depend on recycled metal as a primary input.
However, ITAC maintains that policy battles are not the solution to the sector’s challenges. Instead, the commission has emphasised the need for increased infrastructure investment to stimulate demand for locally produced steel.
The regulator cautioned that tensions between major producers and smaller competitors are becoming increasingly hostile, raising concerns about the long-term sustainability of the industry.
South Africa’s steel output has declined sharply over the past two decades, falling by more than half since 2006. The downturn has been driven by a combination of factors, including an influx of cheaper imports, rising electricity and transport costs, and sluggish economic growth.
ITAC says addressing these structural challenges through demand-driven measures will be critical to supporting recovery in the sector.