The long-awaited decision regarding the safeguard duty for square billet in Egypt has been pushed back again, leaving the market situation still uncertain.
Egypt’s Supreme Administrative Court has postponed its decision on the appeal made by the local mills to have the import duty for billets restored; the new deadline has been set for August 24, SteelOrbis has learned. According to the local media, two judges have resigned from the panel, thereby causing the delay. Market players are hopeful that the upcoming session will result in a clear decision; however, some believe that the confrontation between local steel producers and re-rolling companies may continue.
The safeguard import duty for billet was introduced back in April this year with the target to protect local steel mills, which have been under pressure from high billet production costs. Egypt's 21 re-rolling companies, demanding to have the duty eliminated, filed the complaint which the Administrative court later found to be justified. A counterclaim made by the local steel producers was overruled. Subsequently, the case was brought to the Supreme Administrative Court. “I’m afraid the decision will not be in favor of the mills. If so, there is not much point in producing billet locally in Egypt with the current gas and electricity prices,” a local source told SteelOrbis.