Steel yourself...
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South Africa’s steel industry is in the crosshairs once again, and once again for all the wrong reasons. Itac, the department of trade, industry and competition’s trade regulator, has been instructed by minister Parks Tau to conduct arguably the widest tariff review in its history, of imported steel. This as Arcelor Mittal SA (AMSA), the country’s only integrated steelmaker, is being rescued by the State. The review threatens widespread price increases on imports — everything steel-related is included — from iron ore to wheelbarrows. The problem, as trade expert Donald MacKay tells Peter Bruce in this edition of Podcasts from the Edge, is that while literally hundreds of imported products will be reviewed, Itac normally takes 27 months to complete just one review. Parks Tau wants the review done by July!
“The unintended consequences can be existential to some companies,” says MacKay, “You can’t do all of this and expect some companies to not fail. So maybe its not Mittal but there’s no way everyone comes through this… I think this review is too big. It should have been broken up.”
“The unintended consequences can be existential to some companies,” says MacKay, “You can’t do all of this and expect some companies to not fail. So maybe its not Mittal but there’s no way everyone comes through this… I think this review is too big. It should have been broken up.”