NEWS ANALYSIS: SA’s steel industry flounders as state blunders
The government's pledge to ‘work with’ the South African steel industry is too little, too late
The government will continue to "work with" the South African steel industry to avert job losses in the crisis-hit sector. But this is a case of closing the stable door after the horse has bolted. Some of the problems in the industry can be put down to SA’s membership of the Brics grouping of nations. Others to the ruinous years of the Zuma administration. But it also boils down to errant policy over steel, and the state’s unremitting desire — and at the same time its inability — to control what is best left to markets.In the case of Brics, SA has been reluctant to offend its geo-strategic partner China by hitting cheap steel imports hard. Instead, the government has taken years to increase the general tariff on primary steel products to 10% and to implement 12% safeguard measures on hot rolled coil and plate products. Critics say this just benefits monopoly South African primary steel producer ArcelorMittal SA by denying value-added manufacturers cheaper inputs. Meanwhile, the stat...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.