Egypt's imposition of a new duty for
rebar imports as of November 29 has surprised many in the steel markets, including Turkish mills.
According to a statement of
Egypt's Ministry of Trade, a duty of 6.8 percent will be imposed for
rebar imports, with the amount of the duty not to be less than EGP 299/mt ($49/mt). The import duty is expected to remain in force for 200 days at most.
Although the duty is only temporary, it will likely threaten Turkish mills' dominance in the Egyptian market, while the Turkish producers have already been affected negatively by sluggishness in the global markets and weak demand. It is thought that, in addition to the Turkish mills, the new duty will also negatively impact
rebar suppliers from Algeria and southern Europe.
As SteelOrbis previously reported, in the first nine months of the current year
Turkey's
rebar exports to
Egypt amounted to 426,434 mt, compared to 390,947 mt in the full year of 2011.
Egypt was
Turkey's fourth largest
rebar export market in the January-September period of the current year.
In the Egyptian domestic market, traders'
rebar prices early this week were standing at $630-640/mt ex-warehouse, while Turkish mills'
rebar offers to the country are at about $610/mt CIF.