Error correction – Competition Commission steel inquiry


Off to an inauspicious start, my very first Trade Brief, contained an error. I had stated we only had one primary steel producer (ArcelorMittal) benefits from import duties of 10%. This is only true for flat products, although Columbus is apparently starting production of mild steel too and Scaw Metals is setting up a flat steel plant using scrap metal as feedstock. Scaw is not yet operational. For long products, there are a number of producers besides ArcelorMittal, such as Scaw Metals and Cape Gate, who manufacture their products from scrap steel.

Some downstream fabricators benefit from import duties too (think wheelbarrows or fasteners), but these companies typically have inflated raw material costs because of the upstream duties, so its complicated.