GCC announces steel safeguard investigation

Thursday, 24 October 2019 17:30:22 (GMT+3)   |   Istanbul
       

The General Secretariat of the Gulf Cooperation Council (GCC) has announced its decision to launch a safeguard investigation regarding steel imports to the region. The authorities are planning to study the situation regarding imports of various iron and steel products to the GCC in order to prevent unfair and harmful trade practices. According to the official statement, the investigation will include a wide range of products, among which flat rolled, cold rolled coils and sheets, rebar and wire rod, welded and seamless pipes and metallic coated steel are the main groups. Under the safeguard investigation, the competent authorities will investigate steel imports to the GCC from 2014 up to the first half of 2019, SteelOrbis understands.

Sources expect that, if injury to local businesses is proved, the authorities might come up with a quota system which restricts volumes to the equivalent of buyers’ requirements in balance with local supply. Overall sources are concerned regarding the possible outcome for the hot rolled coil (HRC) importers as clearly there is lack of domestic production in the region. Coated steel suppliers, which have faced increased capacity in the market over recent years, might benefit from lower incoming volumes. In the meantime, the situation in the rebar and wire rod markets will hardly change as imports for these products have already been restricted by the 10 percent import duty. “The outcome, whatever exactly it is, might hit the flat steel business, especially supplies of coated stock and hot rolled feedstock,” a local source told SteelOrbis.


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