News24
14 Aug 2019, 01:14 GMT+10
The country's major cement producers said on Tuesday they have applied to the International Trade Administration Commission (ITAC) seeking protection from imports threatening the industry.
The submission by The Concrete Institute (TCI) wants the body to place "safeguarding" measures from cheap cement imports from countries such as China and Vietnam, which they say are undercutting the industry by up to 45%.
The appeal comes as the industry is reeling from the current economic slump, which has hit the construction sector and seen major companies like Group Five and Basil Read apply for business rescue.
Speaking to journalists in Johannesburg, TCI Managing Director, Bryan Perrie, said the institute, which represents AfriSam, Dangote Cement SA, Larfarge, Natal Port Land Cement and PPC, believed the imports were seriously impacting the industry at a time when it is facing "unprecedented low levels of demand" due to a decline in economic growth.
"A safeguard action would therefore be required to ensure the viability of this critical industry," he said.
In an application made last week, the TCI stated that a total of 350 441 tones of cement imports reached SA shores in the second quarter of 2019, the highest number since the third quarter of 2015.
Imports from Vietnam topped 301 872 tons, and total imports have increased by 139% since 2016, it added.
The industry is further dealing with the financial impact of the newly implemented Carbon Tax, which the TCI says will increase operating costs and hit margins.
PPC expects difficult trading conditions in SA to persist
According to Perrie, these factors do not apply to cement importers, leading to "uneven playing field" with local producers.
"The cement industry needs to compete on a level playing field and not be scrambling to survive under-priced imports."
It is not for the first time that the cement industry has reached out to ITAC for intervention. In 2015, the commission imposed anti dumping duties on cement import from Pakistan, which have been described as effective.
The industry is also considering a submission to the Department of Trade of Industry over the issue.
The cement industry is the latest sector of the economy which has been battered by cheap imports. The poultry sector has been fighting cheap imports of chicken products, with calls from the South African Poultry Association to curb imports from Brazil.
Get a daily dose of Myanmar Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Myanmar Sun.
More InformationWASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
Nearly three months after a devastating earthquake struck Myanmar, the country remains trapped in a deepening crisis, compounded by...
Birmingham [UK], July 5 (ANI): Rishabh Pant made history on Saturday, becoming the first Asian wicketkeeper-batter to score 2,000 runs...
Kabul [Afghanistan], July 5 (ANI): A large number of Afghans recently deported from Iran are facing severe challenges, including homelessness,...
Kathmandu [Nepal], July 5 (ANI): The Nagarik Unmukti Party has decided to walk out of the ruling alliance led by Nepal Prime Minister...
Raipur (Chhattisgarh) [India], July 5 (ANI): BJP MP Sudhanshu Trivedi on Saturday slammed Congress MP Rahul Gandhi over his remarks...
MADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...