SA commission to probe steel dumping from Asia

The International Trade Administration Commission of South Africa (Itac) has opened an investigation into the possible dumping of steel from China, Thailand and Japan to determine whether the SA Customs Union (Sacu) is experiencing material injury. A Business Day report the Itac investigation, which covers the period from 1 April 2022 to 30 March, also seeks to determine if there is a causal link between the alleged dumped imports and the material injury experienced by Sacu’s industry. The application to open the investigation was brought by ArcelorMittal Rail & Structures, which is a wholly owned subsidiary of steel producer ArcelorMittal SA and Columbus Stainless. The two companies constitute 100% of the domestic production of U-sections, I-sections and H-sections of iron or non-alloy steel (excluding H-sections of a height greater than 200mm) and equal angles of iron or non-alloy steel. In a notice published on Friday, Itac said the two applicants presented evidence that showed there is a ‘a prima facie case to enable the commission to arrive at a reasonable conclusion that an investigation should be initiated based on dumping, material injury and causality’. ‘The applicant submitted prima facie evidence to show price suppression and depression. The applicant’s information also indicated declines in sales volumes, output, productivity, capacity utilisation, profits, cash flow, market share, employment and return on investment,’ Itac said. ‘The applicant submitted information alleging that there is freely disposable capacity or an imminent substantial increase in steel capacity of the exporters in the (People’s Republic of China), Japan and Taiwan, a significant increase of allegedly dumped imports into the Sacu market, which indicates the likelihood of substantially increased importation and that the subject product is entering the Sacu market at prices that will have a significant depressing or suppressing effect on Sacu prices and are likely to increase demand for further imports.’