South Africa Steel Needs Demand Not Belligerence, Regulator Says

The key to rescuing South Africa’s ailing steel industry, in which a unit of ArcelorMittal SA is feuding with smaller competitors, is by growing demand rather than fixating on export controls, the country’s chief trade regulator said.

ArcelorMittal South Africa Ltd. last year shut a steel mill, citing competition from so-called mini-mills that use scrap metal as their feedstock rather than iron ore. The company, which still runs Africa’s biggest steelmaking plant south of Johannesburg, has demanded the government end a 20% tax on the export of scrap, which it says reduces the cost of the material for its rivals.