Steel giant wants more protection

ARCELORMITTAL South Africa said it wanted additional protection from cheap Chinese steel entering the country, asking the government to add import duties on more products. “As an industry, we want additional protection on a wider range of products,” Kesebone Maema, a spokeswoman for the unit of the world’s largest steel producer, said yesterday. “We have submitted additional applications and we hope for the best outcome.” Local steelmakers are asking the government for protection against a surge in subsidised Chinese imports supplied at prices as much as 25 percent below local production costs. Struggling to compete, local companies including Evraz’s South African unit and Scaw Metal Group have announced plans to cut a total of more than 2 400 jobs. The government approved in August on 10 percent tariffs on galvanised, aluminium-zinc coated, and colourcoated steel. ArcelorMittal South Africa had applied for tariff protection across more products and planned to ask for anti-dumping and anti-subsidy duties within the next eight weeks, Maema said. The company’s shares declined as much as 9.93 percent to the lowest since December 2001, trading at R8.25 at yesterday’s JSE close. – Bloomberg