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Johannesburg - South Africa is preparing to introduce tariffs on Chinese steel imports, according to a group of labour unions and producers that met with government officials last week.
The tariffs will be signed off next week and include a demand for the industry to not raise steel prices to “unaffordable levels”, Marius Croucamp, head of steel at trade union Solidarity, told reporters in Johannesburg during a joint briefing with three other labour organisations and the Steel and Engineering Industries Federation of Southern Africa.
Steel manufacturers and labour groups have asked the government to lessen the effect of a surge in Chinese steel imports, which are being supplied at prices as much as 25% below local production costs.
The cheap steel has hurt the local industry, with companies including Evraz Steel [JSE:EHS] and Scaw Metal Group announcing plans to cut more than 2 000 jobs combined. ArcelorMittal [JSE:ACL] has said it may close a loss-making plant by the end of the month.
The parties are also working toward a ban on scrap metal exports and the government will ask state-owned enterprises to source steel exclusively from South African producers, Croucamp said.
Sidwell Medupe, a spokesperson for the department of trade and industry, did not immediately answer calls seeking comment.
