TUESDAY, 12.00NOON:
THE United States is forcing South African steel producers to sell steel plate exported to the US at prices far higher than those allowed to Russia, China and Ukraine. The US domestic steel industry is heavily protected by quotas and “floor prices” imposed on foreign steel producers, preventing them from undercutting the US producers.
The US anti-dumping action against South Africa has wiped out local sales to the US, threatening 7 500 jobs and the closure of two steel plants. The issue will be raised at this month’s meeting of the US-SA bi-national commission, and raises the possibility of South Africa taking a formal complaint of discrimination to the World Trade Organisation.
Russia, China and Ukraine are treated differently to SA on the basis that they are “non-market” economies. Their allocations for steel exports range from 100 000 tons at $300 a ton for Russia to 158 000 tons at $376 a ton for Ukraine.
These quotas are far larger than the amounts SA was exporting before being knocked out the market, and the minimum price level forced on local producers Iscor and Highveld Steel and Vanadium is said to be as much as $60 higher than the prices allowed to the “non-market” economies.
16