Help

From the foundations to the rooftops of our cities, our steel supports and strengthens our nation.

Steel producers up rebate to value-adding exporters by 28.2%

Source: Engineering News Date: 09 May 2012

The South African Iron and Steel Institute (Saisi) reported on Wednesday that its assistance to value-added steel exporters had been increased by 28.2%, from R135/t to R173/t.

The increase in the rebate to those adding value of more than 20% to primary steel products destined for export markets would also be backdated to February 1, 2012.
The assistance would be administered through the Committee of Secondary Manufacture Fund, established by South African steel producers in 1972 to enhance the export competitiveness of the domestic steel processors.
The scheme, which had disbursed R246-million over the past five years, was funded by the primary producers and was independent of individual rebates offered by Saisi members. Over the same period, the fund had assisted more than 140 registered exporters, which collectively exported more than 1.8-million tons of steel and earned more than R103-billion in foreign exchange.
Acting secretary-general Johann Nel said the increase was designed to stimulate and revive exports in the context of difficult economic conditions, as well as to assist in creating and/or maintaining jobs.
The move came amid an ongoing dispute between local steel producers and the South African government over domestic selling prices. There was also a fresh disagreement over whether local steel should receive preference under the public sector’s procurement rules.
The revised Preferential Procurement Policy Framework Act regulations, which came into effect on the December 7, 2011, empowered the Department of Trade and Industry (DTI) to designate industries, sectors and subsectors for local production at a specified level of local content.
Domestic steel companies expressed dismay at the exclusion of steel product inputs from the arrangement. But the DTI defended the exclusion, owing to “an absence of a developmental steel price” and “an effective domestic monopoly in the production of most of these products”.

However, the department stressed that the designation of steel-intensive products, such as power pylons and railways rolling stock, should still boost the local steel companies, “provided they ensure that their products are competitively priced”.

The South African Iron and Steel Institute (Saisi) reported on Wednesday that its assistance to value-added steel exporters had been increased by 28.2%, from R135/t to R173/t.

The increase in the rebate to those adding value of more than 20% to primary steel products destined for export markets would also be backdated to February 1, 2012.
The assistance would be administered through the Committee of Secondary Manufacture Fund, established by South African steel producers in 1972 to enhance the export competitiveness of the domestic steel processors.
The scheme, which had disbursed R246-million over the past five years, was funded by the primary producers and was independent of individual rebates offered by Saisi members. Over the same period, the fund had assisted more than 140 registered exporters, which collectively exported more than 1.8-million tons of steel and earned more than R103-billion in foreign exchange.
Acting secretary-general Johann Nel said the increase was designed to stimulate and revive exports in the context of difficult economic conditions, as well as to assist in creating and/or maintaining jobs.
The move came amid an ongoing dispute between local steel producers and the South African government over domestic selling prices. There was also a fresh disagreement over whether local steel should receive preference under the public sector’s procurement rules.
The revised Preferential Procurement Policy Framework Act regulations, which came into effect on the December 7, 2011, empowered the Department of Trade and Industry (DTI) to designate industries, sectors and subsectors for local production at a specified level of local content.
Domestic steel companies expressed dismay at the exclusion of steel product inputs from the arrangement. But the DTI defended the exclusion, owing to “an absence of a developmental steel price” and “an effective domestic monopoly in the production of most of these products”.

However, the department stressed that the designation of steel-intensive products, such as power pylons and railways rolling stock, should still boost the local steel companies, “provided they ensure that their products are competitively priced”.

Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now

×