On Friday 19 June, ITAC initiated a safeguard investigation on certain structural steel in the form of U, I, H, L, and T sections, not further worked than hot-rolled, hot drawn, or extruded.

The specific products are as follows:

U sections of alloy or non-alloy steel, not further worked than hot rolled, hot drawn or extruded of a height of 80mm or more classifiable under tariff subheadings 7216.31

I sections of alloy or non-alloy steel, not further worked than hot rolled, hot drawn or extruded of a height of 80mm or more classifiable under tariff subheadings 7216.32

H sections of alloy or non-alloy steel, not further worked than hot rolled, hot drawn or extruded of a height of 80mm or more classifiable under tariff subheadings 7216.33

L or T sections of alloy or non-alloy steel, not further worked than hot rolled, hot drawn or extruded of a height of 80mm or more classifiable under tariff subheadings 7216.40

Other angles, shapes and sections, not further worked than hot rolled, hot drawn or extruded classifiable under tariff subheadings 7216.50

Angles, shapes and sections of other alloy steel, hollow drill bars and rods, of alloy or non-alloy steel classifiable under tariff subheading 7228.70

The applicants Evraz Highveld Steel and Vanadium Corporation Limited (Highveld), Highveld structural Mill (Pty) Ltd (Highveld Structural Mill) and ArcelorMittal South Africa Limited (AMSA) provided prima facie evidence to indicate that:

  • The events cited can be regarded as unforeseen developments. These unforeseen developments and the effect of the obligations incurred under the GATT 1994 led to the increased volume of imports in absolute and relative terms;
  • The surge in the volume of imports is recent, sharp, significant and sudden enough;
  • The SACU industry is experiencing serious injury; and
  • This is causally linked to the surge in imports.

The period of investigation for determining the allegation of serious injury and the surge in imports is 1 January 2014 to 31 December 2019. Information submitted by Evraz Highveld and Vanadium Corporation Limited (Highveld) forms the basis of the injury analysis from 1 January 2014 to July 2015. The injury analysis for AMSA pertains to the period 1 March 2017 to 31 December 2019. The split injury assessment is because Highveld was the only manufacturer of the subject product until July 2015 when it halted operations. AMSA started manufacturing the subject product from 1 March 2017. Currently, AMSA is the only producer of the subject product.

Import trends show a 59% increase in imports for all tariff subheadings under investigation between 2014 and 2019. However, the average increase in imports varies according to tariff subheading.

To properly interrogate the data be sure to visit stratalyze.com and sign up for a free 7 day trial. While you are there, read our recent report on safeguards in South Africa.

Interested parties have until 9 July to submit comments to ITAC.

Want help? Email us on info@xa.co.za

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