The International Trade Administration Commission of South Africa (“the Commission”) has accepted an application alleging that certain flat-rolled products of iron, non-alloy or other alloy steel of a width of 600mm or more, whether or not in coils, not further worked than hot-rolled, including pickled and oiled, hot-rolled, not clad, plated or coated (excluding stainless and grain-oriented silicon electrical steel) originating in or imported from the People’s Republic of China (“PRC”), Japan and Taiwan are being dumped into the Southern African Custom Union (“SACU”) market, causing material injury and/or threatening to cause material injury to the SACU industry concerned.
The applicant
The application was lodged by Arcelor Mittal South Africa (“AMSA” or “the Applicant”) and supported by Columbus Stainless (Pty) Ltd. Together, they constitute 100% of the domestic production of the subject product in SACU. AMSA provided injury information in this regard, constituting a major proportion of the total SACU production.
The Applicant submitted sufficient evidence and established a prima facie case to enable the Commission to arrive at a reasonable conclusion that an investigation should be initiated based on dumping, material injury, and causality.
The product
The product allegedly being dumped is certain flat-rolled products of iron, non-alloy, or other alloy steel of a width of 600mm or more, whether or not in coils, not further worked than hot-rolled, including pickled and oiled, hot-rolled, not clad, plated, or coated, (excluding stainless and grain-oriented silicon electrical steel), (classifiable under tariff sub-headings 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.51, 7208.52, 7225.30 and 7225.40) originating in or imported from the PRC, Japan and Taiwan.
The allegation of dumping
The dumping allegation is based on comparing the normal values and the export prices from the PRC, Japan and Taiwan. The normal values were determined based on export prices to various third countries per applicable tariff sub-heading. The normal values provided for the PRC, were third country exports from the PRC to Argentina, Canada, Germany, New Zealand, Russia and Spain. The normal values provided for Japan, were third country exports to the PRC, Indonesia and the United Kingdom (“UK”). The normal values provided for Taiwan, were for third country exports to Belgium and Canada. The export prices were based on official import statistics from the South African Revenue Service (“SARS”).
On this basis, the Commission found that there was prima facie proof of dumping of the subject product originating in or imported from the PRC, Japan and Taiwan.
The allegation of injury
The Applicant submitted prima facie evidence to show price suppression and depression. The Applicant’s information also indicated declines in sales volumes, output, productivity, capacity utilisation, profits, cash flow, market share, employment and return on investment. On this basis, the Commission found that there was prima facie proof of material injury.
Causal link
On this basis, the Commission found prima facie proof of material injury to the SACU industry and that there is a causal link between the alleged dumped imports and the material injury suffered by the SACU industry.
Period of investigation
The period of investigation to determine the dumping margin is from 01 April 2023 to 31 March 2024, and the period of investigation to determine material injury is from 01 April 2021 to 31 March 2024.
Legal procedural framework
Having decided that there is sufficient evidence and a prima facie case to justify the initiation of an anti-dumping investigation, the Commission has begun an investigation in terms of section 16 of the International Trade Administration Act, 2002 (the ITA Act).
Enquiries may be directed to the investigating officers, Mr. Siphumele Edwin Mkwanazi at email address: emkwanazi@itac.org.za, Ms. Portia Chuma at email address: pchuma@itac.org.za, Ms. Phindile Mabona at email address: pmabona@itac.org.za or Ms. Azwitamisi Mathada at email address: amathada@itac.org.za.
