The International Trade Administration Commission of South Africa (Itac) has made a preliminary decision not to impose a provisional safeguard duty on imports of corrosion-resistant steel coil, following a preliminary determination in an ongoing investigation into the surge of imports.

The investigation was gazetted on July 25, 2025, in response to an application from ArcelorMittal South Africa, which is a major producer of the subject product within the Southern African Customs Union (Sacu).

The application is supported by SAFAL Steel, the other Sacu-based producer.

These steel coils are widely used in key downstream industries such as construction, roofing and cladding, appliance manufacturing and the automotive and engineering sectors.

Their quality and corrosion-resistant properties make them a critical input for structural and fabricated steel applications, Itac points out.

Following a thorough review of the comments from interested parties and the applicant, among other reasons, the commission found that the surge in imports is the result of unforeseen developments and is recent, sudden, sharp and significant; and that the Sacu industry is experiencing serious injury owing to this surge.

The commission considered that the applicant is experiencing serious injury in the form of a decline in net profit, market share, price suppression, price depression and negative cash flow.

However, other injury indicators such as sales, output, capacity use and employment show growth and operational stability; therefore, the commission made a preliminary determination that there are no critical circumstances to warrant immediate action to prevent damage, which would be difficult to repair.

Safeguard measures are trade remedies permitted under the World Trade Organisation Agreements and South Africa’s domestic legislation.

They are designed to provide temporary relief to a domestic industry facing a sudden and damaging surge in imports, giving it time to adjust to the increased competition.

Interested parties are invited to submit comments on the decision to Itac by 15:00 on February 13.