New Tariff Targets Surge in Steel Imports
South Africa has implemented a 13% safeguard duty on hot-rolled coil and plate imports effective May 1, 2025.
This decision by the government ends months of uncertainty for local steel buyers and importers.
The new rate, confirmed by Finance Minister Enoch Godongwana, follows the expiration of the previous 9% duty.
The International Trade Administration Commission (ITAC) began its investigation into hot-rolled flat steel products on January 17.
In addition to hot-rolled coil and sheet, some galvanized steel products will also face the new 13% duty.
These products already carry a 10% import tariff, meaning some steel imports will now face a combined rate of 23%.
However, the government has exempted specific countries from the updated duty, as noted in the May 2 official notice.
Steel Buyers Step Back Amid Uncertainty
South African buyers have pulled back from the flat steel market in response to the new measures.
According to MEPS analyst Stuart Gray, uncertainty surrounding global trade and tariffs is deterring purchases.
The ongoing anti-dumping investigation is also creating market instability.
Proposed duties include 72% on Chinese hot-rolled steel, 24% on Japanese imports, and 30% on Taiwanese products.
As a result, some buyers are seeking alternative sources, although most hesitate due to possible future trade actions.
Recent research by MEPS revealed a surge in flat steel imports, leading to excess inventories in South Africa.
Despite the safeguard action, ITAC is also reviewing South Africa’s broader steel import framework.
This review covers tariffs and non-tariff measures, including import permits, with public consultations ending on April 16.
SuperMetalPrice will continue to monitor the outcome of this investigation and its implications for steel prices and trade.
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