Steel industry stakeholders demand urgent review of Preferential Price System changes

SOUTH African steel value chain stakeholders have criticised the International Trade Administration Commission’s (Itac) amendments to the Preferential Price System (PPS), in effect as of the beginning of this month, as having ignored evidence-based recommendations, amongst a series of uncorrected errors.

- BANELE GININDZA

SOUTH African steel value chain stakeholders have criticised the International Trade Administration Commission's (Itac) amendments to the Preferential Price System. | SUPPLIED

In response to the gazetted amendments, steelmaker ArcelorMittal South Africa (Amsa) said the revised regulations again prioritise a small group of scrap-based mini-mills, to the detriment of the broader steel manufacturing ecosystem, including primary producers, downstream fabricators, recyclers, waste pickers, and industrial consumers.

It said the concerning amendments are in addition to the delayed release of an independent scrap-industry study commissioned by the Department of Trade, Industry and Competition (Dtic), despite being completed months ago.

This comes as Itac CEO Ayabonga Cawe announced reducing the discount for domestic ferrous scrap-consuming industries from 30% to 25%, establishing a Technical Working Group (TWG), and restricting transactions to the use of electronic payment instead of cash.