sassda news
Far from a level playing field When these values are assessed against the underlying cost of commonly used stainless steel grades, as well as manufacturing, freight and distribution costs, the disparity raises serious questions about whether local manufacturers are competing on an equitable basis. The concern is not simply that imported products are cheaper. Sassda is seeking to determine whether certain prices are commercially realistic and whether they may indicate dumping, incorrect customs declarations or the use of materials that do not comply with local specifications. To strengthen its analysis, Sassda is also conducting detailed retail research. This includes visiting stores, photographing products, recording prices and barcodes, checking stated material grades and converting retail prices into comparable per-kilogram values. The data is being consolidated and analysed using digital and artificial-intelligence-supported tools, allowing Sassda to compare products, retailers, import values and retail margins across a large dataset. The intention is to establish a defensible benchmark value for stainless steel hollowware. Goods imported
below this benchmark could then be flagged for closer examination by the relevant authorities. Basson describes the work as a high-level pre- feasibility study that can help determine whether greater local production is commercially viable. “If local manufacturers can compete at globally realistic commercial prices but are being displaced by products entering the country at questionable values, targeted trade remedies or tighter enforcement may be more appropriate than general industry support.” An accountability mechanism Looking ahead, Sassda plans to use the research to support its engagement with the Department of Trade, Industry and Competition and the International Trade Administration Commission of South Africa (ITAC). The introduction of permit requirements for certain imported steel products could provide an additional mechanism through which suspiciously low-priced hollowware imports can be identified and investigated. Sassda does not advocate indiscriminate protection across the stainless steel market. Its approach is to support targeted intervention where there is credible evidence of dumping, misdeclaration, substandard material or other anticompetitive practices. For Sassda members, the relevance extends beyond existing hollowware manufacturers. Reviving the sector would create demand throughout the value chain, including for stainless steel sheet and coil, tooling, forming, welding, polishing, packaging, logistics and technical services. The association has also been investigating the production capacity of local automotive and other manufacturing facilities that could potentially diversify into hollowware production. This supply-side assessment is now being combined with the consumer and retail research to establish a holistic view of the market. The result could provide manufacturers and investors with credible information on demand, pricing, production requirements and potential routes to market. “At the back end, we have examined local manufacturing capacity. At
the front end, we are now analysing what consumers are buying and paying,” Basson says. For a sector seeking to rebuild domestic manufacturing capability, Sassda’s hollowware research could offer more than a snapshot of the market. It could provide the factual foundation required to convert localisation ambitions into commercially sustainable production, investment and employment.
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Issue 3 – 2026
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