G/SG/N/6/ZAF/9  
 
23 June 2020 
(20-4387) Page: 1/3 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMENT ON SAFEG UARDS ON 
INITIATION OF AN INV ESTIGATION AND THE R EASONS FOR IT  
SOUTH AFRICA 
U, I, H, L and T sections of iron or non -alloy steel  
The following communication, dated  23 June 2020, is being circulated at the request of the 
delegation of South Africa .* 
 
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Pursuant to Article 12.1(a) of the Agreement on Safeguards, South Africa hereby gives notification 
of the initiation of a safeguard investigation into the surge of imports of U, I, H, L and T sections of 
iron or non -alloy steel, not further worked than hot -rolled, hot -drawn or extruded, of a height of 
80 mm or more and other angles, shapes and sections of iron or non -alloy steel, not further worked 
than hot -rolled, h ot-drawn or extruded, hereinafter referred to as "structural steel products."  
1  THE DATE WHEN THE IN VESTIGATION WAS INIT IATED  
The investigation was initiated on 19 June 2020. The notice of initiation by the investigating authority 
was published through notic e No. 335 of 2020 in Government Gazette No. 43447.  
2  THE PRODUCT SUBJECT TO THE INVESTIGATION  
The subject product is described as U, I, H, L and T sections of iron or non -alloy steel, not further 
worked than hot -rolled, hot -drawn or extruded, of a height of 80 mm or more and other angles, 
shapes and sections of iron or non -alloy steel, not further worked than hot -rolled, hot -drawn or 
extruded (structural steel). The subject product is imported under the following tariff headings: 
7216.31, 7216.32, 7216.33, 72 16.40, 7216.50 and 7228.70.  
3  THE REASONS FOR THE INITIATION OF INVEST IGATION  
i. The application was lodged by Evraz Highveld Steel and Vanadium Corporation Limited 
(Highveld), Highveld structural Mill (Pty) Ltd (Highveld Structural Mill) and ArcelorMittal 
South Africa Limited (AMSA), being the only producer of the subject product in the SACU.  
The claim is that the subject product is being imported into the SACU market in such 
increasing quantities in absolute terms and relative to SACU production and under such 
conditions, to be causing serious injury to the SACU industry.  
 
* A copy of the Notice of the Initiation has been submitted electronically. To consult this document 
please contact Ms. Richards ( anne.richards@wto.org ) or Ms. Naville ( delphine.naville@wto.org ) of the Rules 
Division.  G/SG/N/6/ZAF/9  
 
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  ii. Prima facie  information on which the investigation was initiated:  
The Commission found that the applicant submitted prima facie  information to indicate a 
sharp, sudden, recent and significant increase in imports of structural steel products during 
the period of investigation.  
4  SERIOUS INJURY AND C AUSAL LINK  
The period of investigation for data evaluation for the purposes of determi ning the allegation of 
serious injury is 1 January 2014 to 31 December 2019.  
The injury analysis relates to information submitted by Evraz Highveld Steel and Vanadium 
Corporation Limited (Highveld) for the period 1 January 2014 to July 2015 and information  submitted 
by ArcelorMittal South Africa Limited (AMSA's) for the period 1 March 2017 to 31  December  2019. 
Highveld was the only manufacturer of the subject product until July 2015 when it closed shop. 
AMSA started manufacturing the subject product from 1 March 2017 to date. Currently AMSA is the 
only producer of the subject product.  
The Applicant alleged and submitted prima facie  information indicating that it is experiencing serious 
injury in the form of a decline in sales volumes, output, market share, p roductivity, utilisation of 
capacity and employment for the period 1 January 2014 to 31 December 2019. AMSA also 
experienced net losses during the period of investigation.  
5  UNFORESEEN DEVELOPME NTS 
The Applicant submitted that a confluence of events forms th e basis of the unforeseen development 
that supports this application. That is, ultimately the considerable oversupply of steel, and 
specifically the subject product, in the world today causing a surge in the volumes of imports into 
the SACU.  
The Applicant stated that during the Uruguay Round of negotiations, South Africa did not foresee 
the following events:  
• The unprecedented steep rate of increase in steel production capacity (including the subject 
product) over the ensuing two decades (more than doubled s ince 1994) to support growing 
construction and manufacturing activity, as well as to help build infrastructure, particularly 
in emerging economies;  
• The significant market downturns in emerging (and other) economies and the resultant 
contraction of demand f or steel that contribute to the imbalance between capacity and 
demand, that is, the global oversupply of steel (including the subject product);  
• Record export volumes by countries with excess capacity, fuelled by excess steel supply;  
• Given the global nature  of the steel industry, excess capacity in one region can potentially 
displace production in other regions, thus harming producers in those markets. This has 
already led to several trade actions by major steel markets. Recent trade measures by those 
countr ies are a result of all the above named unforeseen developments, and the fact that 
their markets are now protected, contracts the global demand for steel even further, 
exasperating the problem of increased imports into the SACU; and  
• The oversupply of steel  (including the subject product) has led to a deterioration in the 
financial situation of steelmakers globally and also the SACU. The excess capacity is 
considered as one of the main challenges facing the global steel sector today.  
6  FURTHER INFORMATION  
Interested parties must make themselves known within a period of 20 days after the initiation of the 
investigation.  G/SG/N/6/ZAF/9  
 
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  Any information which the interested parties may wish to submit in writing and any request for a 
hearing before the Commission that they may wis h to put forward should be submitted within 
20 days following the initiation of this investigation to the Directorate: Trade Remedies I at the 
following address:  
The DTI Campus  
77 Meintjies Street,  
Sunnyside Pretoria , Block Uuzaji, Ground  Floor 
Pretoria 0002  
Tel: +27 12 394 3600  
fax +27 12 394 0518  
If part of the information provided is of a confidential nature, the party concerned should give the 
grounds justifying confidentiality and furnish public summaries of such information, which should be 
as detailed as possible. In instances that a public summary cannot be provided a sworn statement 
must be provided stating the reasons why the information cannot be summarized. This requirement 
is designed to secure transparency  and due access by all the parties to the information relating to 
this investigation. If the summaries are not duly provided and in the absence of just cause, ITAC 
may disregard the information deemed to be confidential.  
 
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