state of the stainless steel nation
manufacturing. Imported steel accounted for roughly 36% of South Africa’s total consumption, with China responsible for about 73% of those imports. Local producers have struggled to compete with products entering the market at prices that are difficult to match. The stainless steel sector has been largely unaffected by the changes so far. The revised duties use a tiered structure based on processing, distinguishing raw or semi-finished inputs from finished goods. The dtic also introduced rebates for products not made locally and a permit system for importing domestic hollowware. Members need clear, timely decisions to use these mechanisms effectively. Sassda is helping with rebate applications and awaiting updated SARS statistics to assess the effect.
one pot every four years, a rate considered consistent with international norms. From about 2024, however, the figures imply a much faster replacement rate of one pot every 1.5 years. That appears unlikely when stainless steel hollowware, with reasonable care, often lasts five years or more and household budgets remain under pressure. The declared import value raises a second concern. At about R13.23 per kilogram, it is below the cost of the raw materials needed to make stainless steel flat product, before the costs of manufacturing, logistics and packaging are included. Taken together, the volume and pricing data raise concerns about possible valuation problems, misclassification or customs misdeclaration. Sassda says targeted, evidence-led verification would help establish whether the market is competing fairly and allow enforcement to focus on substantiated cases. How should the sector respond to unfairly priced or dumped imports while keeping essential materials affordable for local manufacturers? Trade measures should be used where there is evidence of harm but applied carefully so they do not make essential inputs more expensive. Sassda can help members approach the dtic and ITAC with evidence to seek targeted duties on specific products or rebates where goods are not made locally. Applications can be complex and require clear supporting information. The aim is to protect viable local production and jobs while keeping necessary materials accessible and avoiding unintended costs elsewhere in the supply chain.
What have been the effects at a local level specifically?
Our members report that measures offer limited support to local producers and downstream manufacturers facing growing imports of both raw materials and finished products. Stainless steel hollowware is a particular concern. Domestic manufacturers, once an important part of the South African market, are facing intense competition from low-priced imports. Sassda says this has severely damaged local manufacturing, contributing to job losses and business closures. SARS data for HS 73239320 and HS 73239390, the codes covering these products, appear difficult to reconcile with likely household purchasing patterns. Sassda’s analysis suggests that from 2009 to 2023, families bought roughly
11
Issue 4 – 2026
Made with FlippingBook - professional solution for displaying marketing and sales documents online