South Africa initiates investigation into corrosion resistant steel coil

Steel NewsDate: 25-02-2025 by: Nhu Quynh

On February 17, 2025, the Trade Remedies Authority of Vietnam received information that the International Trade Administration Commission of South Africa (ITAC) had officially initiated a safeguard investigation on imported corrosion resistant steel coil. Initiation was chosen in order to safeguard the steel industry against unfair competition.

Please read the article below and join MRS Steel to get more information.

Anti corrosion steel coil is being investigated by trade safeguard

Overview of the incident

Items under investigation: Corrosion resistant steel coil
South Africa imports commodity codes: 72106120, 72106130, 72259225, and 72259235.
Plaintiff: ArcelorMittal South Africa Limited (AMSA)
Initiation Date: February 3, 2025
Period of investigation: May 1, 2021 - April 30, 2024

Corrosion resistant steel coil is the item under investigation

Details of the incident

The plaintiff claims that unexpected changes during the Uruguay Round discussions (1986 - 1994) were the cause of the sharp rise of imported steel. In particular, tariff changes brought about by the division of steel into two distinct HS codes alloy steel (HS 7220) and non-alloy steel (HS 7208), have resulted in an abrupt rise in import production. Furthermore, the Southern African Customs Union (SACU), which has five members (South Africa, Botswana, Lesotho, Namibia, and Swaziland), are under a lot of strain due to the global overabundance of anti corrosion steel coil, particularly from China.

The plaintiffs also cited research and other arguments that demonstrate China has not developed into a fully market economy as promised to WTO members during earlier talks. Additionally, China's economy has been steadily declining since 1994, and major steel companies have increased production and exports, resulting in excess. Due to a decreasing domestic steel market and indicators of slowing economic growth, China has been forced to increase exports in order to address the excess issue. In order to safeguard domestic steel production, this forces nations to strengthen trade defenses.

Additionally, throughout the period from May 1, 2022, to April 30, 2024, the petition highlighted indicators indicating the domestic manufacturing sector is experiencing significant harm, including a decline in output, revenue, profit, market share,...

South Africa imports more steel than ever before

Investigation procedure

Manufacturing and exporting enterprises are obliged to register as related parties. The registration deadline is February 3, 2025, which is 20 days from the date the investigation was started.

Following the start of the investigation, relevant manufacturing and exporting businesses have 20 days to provide feedback on the matter and request consultation. All relevant documents should be submitted to the following address:

Submit directly: Trade Remedies I, International Trade Administration Commission, Block E - DTI Campus, 77 Meintjies Street, Sunnyside Pretoria, Block Uuzaji, Ground Floor.
Postal address: Trade Remedies I, Private Bag X753, Pretoria, 0001, South Africa.
Tel: +27 12 394 3600
Fax: +27 12 394 0518

Alternatively, interested parties may also contact the responsible officers directly: Mr. Busman Makakola at bmakakola@itac.org.za and Ms. Mosa Sebe at msebe@itac.org.za.

As the investigation progresses, ITAC will publish preliminary and final findings, conduct on-site inspections, and hold hearings to confirm information in order to support decisions about evasion, harm to domestic industry.

As linked parties, businesses must register

Notes for Vietnamese businesses before this incident

Faced with this issue, the Trade Remedies Authority of Vietnam (The Ministry of Industry and Trade - MOIT, Vietnamese) suggests that Vietnam steel mills selling anti corrosion steel coil to South Africa should note:

Keep a close eye on the case: To ensure prompt reaction strategies, update information about the investigative process.
Complete cooperation with ITAC: To protect rights and prevent being subject to disadvantageous duty rates, provide records and documentation as needed.
Find new market opportunities: If South Africa implements safeguards, evaluate the potential for growth into other markets to reduce risks.
Increase Competitiveness: In the face of rising trade obstacles, retain export advantages by optimizing production costs and improving product quality.

South Africa's application of trade defense measures greatly affects the economic situation of businesses, so businesses need to be proactive and cooperate closely with management agencies and regularly provide and exchange information with The Ministry of Industry and Trade to receive timely support.

Vietnam steel mills need to closely monitor the case's progress

The article on MRS Group has provided you with the latest information on the incident of South Africa initiating an anti dumping investigation on corrosion resistant steel coil. Follow MRS, we will continuously update information about the incident.