A new era for Moroccan economy and steel industry

A new era for Moroccan economy and steel industry

According to reports; the Moroccan economy is predicted to grow around 4.5% in 2003. The government has been trying to reduce the impact of oil price increases on the economy by reducing the taxes on fuel, in an effort to boost the economy. Agricultural results are also expected to be good this year. As for the steel industry; the customs duties for steel imports into Morocco from EU countries have been lifted effective from the beginning of March as per the agreement with EU. This will be a new era for the Moroccan steel industry as particularly flat rolled material ex-EU mills will be more and more available in the market. Having said that, it should be mentioned that imports of hot rolled coils with thickness between 1.60 mm and 2.00 mm from any origin will still remain possible without paying import duty. On the other hand, the Moroccan mill SONASID will still have the competitive edge in the market for long products as it will be given a certain protection until 2005 under the aforementioned agreement. It guarantees that import duties for deformed reinforcing bars and wire rods will remain effective until 2005 to protect SONASID. Maghreb Steel's new galvanising line will be starting production soon. The new line will allow Maghreb Steel to import a minimum of 50'000 mt cold rolled coils until the end of the year. The company is expected to complete installation of its new cold rolling line only by 2004.