South Africa finally removes 5 percent duty on steel

As previously reported by SteelOrbis, the South African Department of Trade and Industry Ministry (DTI) announced late March that it would lift the 5 percent import duty on steel and stainless steel products with an immediate effect. However, the decision has not been put into effect since then. The announcement made yesterday finally brought an end to this uncertainty in the domestic steel market. The South African Revenue Service announced the removal of the subject duty yesterday, making it effective. Such decision regarding the removal of the duty has been taken since the results of the investigation conducted by the International Trade Administration Commission (ITAC) showed that the existing 5 percent duty is unnecessary as local steel and stainless steel makers are profitable and do not need any protection. The removal of the duty is effective for products including steel and stainless steel flat-rolled products, bars and rods hot-rolled, bars and rods of other alloys, angles, shapes sections and wires. The investigation also indicated that the reduction in the duty on steel products could assist in lowering the cost of production for downstream manufacturing. The South African Iron and Steel Institute, the industry body that includes Mittal Steel SA and Highveld Steel & Vanadium as members, Columbus Stainless and the Southern African Stainless Steel Development Association reportedly opposed to the decision.