Steel producer ArcelorMittal South Africa (AMSA) insists that the institution of a 12% safeguard duty on hot-rolled coil (HRC) from July 1 will not result in a commensurate rise in domestic prices for the primary-steel product, owing to a pricing agreement with government that regulates the setting of domestic flat-steel prices. The safeguard, which is in the process of being authorised by the World Trade Organisation (WTO), will be introduced in addition to the 10% duty already in place for HRC, thus raising overall protection for the product to 22% for a three-year period.
