The Egyptian authorities have decided to postpone the reduction on the safeguard tax rate for billet and rebar, aiming to protect the local steel industry. Earlier it was stated that the import trade policies would be revised due to low pricing for steel globally and because of the worsening impact of the spread of Covid-19 on business activities.
Egypt’s Ministry of Trade and Industry has announced that it has postponed the downward revision of import safeguard duty rates for steel billet and rebar, previously scheduled for April 11 this year, by six months from now. According to the decision taken back in October 2019, the safeguard duty for import billet was due to be revised from 16 percent (or a minimum of $74/mt) to 13 percent (or a minimum of $60/mt) for a period of one year. The import duty for rebar and wire rod was expected to be reduced from 25 percent (or a minimum of $125/mt) to 21 percent (or a minimum of $105/mt).
However, until around mid-October this year billet and longs imports will be subject to 16 and 25 percent safeguard rates, SteelOrbis understands. It is worth mentioning that Egyptian steel mills welcome such a decision, taking into account that low ex-CIS billet prices have led to some decent volumes being imported.
