Algeria-based longs steel market players remain concerned regarding the pressure on local mills caused by still active imports and have been actively calling for government protection. Although, according to sources, the Ministry of Commerce has been working on safeguard measures for a wide range of goods, no specific rates or product lists have been disclosed to the public yet. However, some market insiders believe it is a matter of a couple of weeks before such information is disclosed.
While speaking to the media back in February, Algerian commerce minister Kamil Rezig said that the safeguard measure for reinforcing bar would be 100 percent duty, while the list of 1095 products would be subject to 30-200 percent tax. In the meantime, a group of 992 goods will be subject to 30-120 percent duty as mentioned in the statement. At the moment, no official disclaimer has been given to the market. “It seems that the measure package is under approval or maybe already approved, but not yet published,” a local producer told SteelOrbis. “The decision will be confirmed in the next two weeks. It will be mandatory applied,” the source believes.
In the meantime, according to the local media, rebar imports keep coming to Algeria, thus disturbing local producers who have been piling up the stocks and witnessing slow sales. In particular, it is said that a 10,000 mt cargo ex-Portugal is currently being discharged at the port of Annaba, while another 5,000 mt cargo from Belgium has recently arrived in the same area. Local sources state that incoming imports, though they may not seem sizable in terms of volume, impact local mills as consumption has been at low rates recently and orders are not enough for everyone. In addition, the active imports keep washing away foreign currency, leading to a deeper Algerian trade balance deficit.
In addition to the expected safeguard measures, the Algerian authorities have underlined the importance of local maritime fleet development in order for it to be able to completely take over the transport of goods, which will again allow to save foreign currency and reduce some import bills. The same reasons lie behind the announced intention to accelerate the revival of mining activity in Algeria, SteelOrbis understands.