Market players have been discussing the information that by the end of the year Algeria might forbid the CFR-based imports and restrict local buyers to deal for imports only on FOB basis. While some are sceptical regarding the whole issue and do not believe the measure will be implemented, others prefer to try to estimate the potential risks in advance.
According to the local media, Algeria’s government is mulling the restriction of imports to FOB-based trade only, while delivery operations are planned to be handled by local publicly-owned entities, SteelOrbis understands. Sources say that in such a way the government might be aiming to save foreign currencies as shipping costs are to be paid in Algerian dinars.
For now, the information about the regulation is not official as no directives have been given to the banks and other related entities. Other rumours say that steel and raw materials might be excluded from the regulation, if implemented. “It is ridiculous and certainly will not work for steel,” a trader mentioned.