VEREENIGING - The South African government is looking at ways to protect the steel industry. ArcelorMittal South Africa is closing down its long steel business and this is expected to have an impact on the industry. The government has started a review of import tariffs on metals. The Department of Trade, Industry and Competition has issued a request for public comment on the possibility to raise import tariffs for steel. The department wants to cut the costs of steel raw materials such as iron ore, scrap and coal. ArcelorMittal South Africa complains that cheap imports are killing local business.
Meanwhile, AMSA says it is engaging with stakeholders, including the government, regarding funding that could delay the planned closure of its long steel operations. The steelmaker announced that it will cease long steel production of its mills in Newcastle and Vereeniging by April this year, impacting 3,500 direct and indirect jobs. The company’s longs business operational loss doubled to R1.1-billion in 2024, from R600-million the year before. ArcelorMittal says without a funding agreement, the deferral of the wind-down of the longs business will not be feasible.
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