Along with its decision to restrict hot rolled sheet imports, Morocco is also aiming to protect its steel pipe and tube producers from increasing imports. Currently, a provisional safeguard measure of 25 percent is valid and on October 7 an investigation is due to be launched in order to carry out the definitive decision on the issue, SteelOrbis understands. According to sources, the product group includes welded circular, square and rectangular tubes and pipes.
The trade restriction imposition was initiated by local producers Industube, Longofer and Batifer, with rising imports voiced as the key obstacle to local business development. According to the disclosed data, the total import volume in the first half this year was 23,043 mt, up by 29 percent year on year.
The import pipe and tube restriction will again benefit the sole local flats producer Maghreb Steel, as the internal demand for hot rolled feedstock may increase, while imports are again limited by a 25 percent tariff. Market sources comment that giving the monopoly to Maghreb Steel in terms of all hot rolled flats supply in the country may result in negative consequences for the economy. In particular, the cost of ongoing and planned infrastructure projects will be higher with the 25 percent restriction.