The International trade Administration of South Africa (Itac) has confirmed that it is undertaking a review of the steel tariff structure alongside surveillance of the upstream, midstream and downstream imports of steel products.

The review, which has been initiated following a Ministerial directive, was confirmed in a statement by chief commissioner Ayabonga Cawe in response to an announcement by ArcelorMittal South Africa (AMSA) that it would be closing its long-products business and placing the Newcastle operations into care and maintenance.

Cawe said the outcome of the review was expected this year.

Itac also confirmed that it had been an active participant in efforts aimed at “exploring alternatives” to the closure on Newcastle, especially as these related to the regulation of the export of scrap metal through the Price Preference System (PPS), which it administers.

The commission had also offered updates on progress on trade measures initiated, as well as those under investigation in response to allegations of unfair and injurious import competition.

“In the case of the PPS, the commission Gazetted in September 2024 a review of the guidelines of the PPS, to consider, among other issues, the desirability of the price discounts for ferrous and non-ferrous scrap metals.

“The commission is similarly assessing and investigating a few trade remedy applications covering alloy steel coil, rail and hot-rolled steel products, where AMSA has alleged that they are facing injurious import competition.

“The recommendations of these investigations will be made to the Minister of Trade, Industry and Competition once these are concluded,” Cawe said.

He added that Itac, alongside other departments and public institutions, had continued to engage with AMSA on “identified initiatives” to prevent Newcastle’s closure and described as regrettable the steel group’s assessment that these processes had proved inadequate.

“While we welcome improved asset utilisation in AMSA’s flats business, we further welcome the opportunity to continue to engage in the dtic-led process to find a solution to the ‘crisis-levels’ of capacity under-utilisation in the Newcastle mill,” Cawe said.

He also stressed the need, however, for decisions to be informed by the balance of evidence and for processes to be administratively and procedurally fair.