South African DTI lifts 5 percent import duty on steel

South African Department of Trade and Industry Ministry (DTI) yesterday lifted a 5 percent import duty on primary carbon and stainless steel products with an immediate effect. Steel users have long urged for the reduction or removal of the import duty on steel products, since duties are effective in price arrangements of steelmakers in South Africa. DTI Minister Mandisi Mpahlwa indicated that the move is in line with the government's policy to reduce manufacturing costs. Mr. Mpahlwa said that the government would like to see an end to the practice of Import Parity Pricing (IPP) in which local buyers are sold local products at the prices they would pay if they were to import the products. As previously reported by SteelOrbis, the South African government has been negotiating with Mittal Steel South Africa since 2004 on how Mittal could come up with a new price model to reduce the prices of its various steel products. Following the announcement of the DTI, Mittal Steel SA expressed disappointment at the lifting of the duty. A company official indicated that the 5 percent duty is one of the lowest in the world, and most countries have steel duties higher than 5 percent. The official added that, though disappointed, they respect government's decision on this issue.