Steel sector struggles amid policy tensions

JOHANNESBURG – The trade regulator says South Africa’s steel industry needs stronger demand rather than growing policy battles.

This comes as ArcelorMittal pushes for the removal of a 20 percent export tax on steel scrap, arguing it benefits smaller mini mill competitors that rely on recycled metal.

The International Trade Administration Commission says the focus should instead be on boosting infrastructure spending to revive demand.

READ | SA slaps steel imports with heavy tariffs

The commission warns that tensions between producers are becoming increasingly hostile.

South Africa’s steel output has more than halved since 2006, weighed down by cheap imports, high power and transport costs, plus weak economic growth.