Steelmakers have formally called for the government to reimpose protective duties on imports of iron ore billets, a government source told EnterpriseAM. The Supreme Council for Customs Tariffs is currently reviewing the requests, which proponents argue will help address current market imbalances that are pushing local manufacturers to source billets through imports instead of local producers.

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REMEMBER- A total of13 local companies are eyeing the new billet production license — including Ashry Steel, which is planning to build a USD 200 mn billet plant in its Sixth of October complex, targeting an annual production capacity of 1 mn tons, Chairman Ayman El Ashry previously told EnterpriseAM. The requests and proposals follow a government plan to boost the local iron industry, cut down on iron imports, and turn Egypt into a regional iron export hub.

This wouldn’t be the first time protective duties have been imposed on billet imports, with a 15% duty imposed between 2019 and 2021.

SOUND SMART- Iron ore billets are a critical intermediate product in the steel manufacturing process. They are semi-finished, solid blocks of steel, typically with a square or circular cross-section, produced from the continuous casting of molten steel. These billets are not a final product themselves but serve as the fundamental raw material for creating a wide variety of finished steel goods, including rebar, wire rods, pipes, and tubes — all key construction inputs.

Upcoming customs and tariffs amendments could address this — and also other imports affecting other industries. The council has received requests from a large number of industries to adjust tariffs, which supporters say will help support the state’s industrial expansion and localization ambitions, our source told us.

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