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The government is weighing extending anti-dumping duties on imported billet and steel sheets for up to three more years, a government official tells EnterpriseAM. Originally introduced 200 days ago, these tariffs are designed to shield local producers, but they’ve sparked criticism from downstream industries due to increased costs.
Why this matters: Importing billet is a massive drain on the economy, costing Egypt roughly USD 1 bn annually in import costs, our source tells us. By keeping anti-dumping duties in place on the roughly 1 mn tons of billets imported annually, the government is looking to promote the local production of the materials with new billet production licenses to be offered soon.
Eight Egyptian and Chinese companies have already applied for new billet production licenses, which the state hopes will not only help meet domestic demand but also support the effort to increase exports to USD 145 bn by 2030. Factories are primed and ready to inject fresh capital as soon as the new licenses are officially issued, Chamber of Commerce head and El Ashry Steel Chairman Ayman El Ashry noted.
By the numbers: Currently, 26 steel plants face billet shortages, with only six noting sufficient feedstock input, according to former Metallurgical Industries Chamber head Mohamed Hanafy
But not everyone is on board, with downstream manufacturers arguing that duties raise production costs, especially for appliances, sources at the Federation of Egyptian Industries tell us. Manufacturers opposed to the move are working on preparing a statement to pass on to the prime minister and industry minister, calling on the government to rethink its decision.
They claim that local production only covers around 30% of the local market’s needs, compounded by the fact that much of this is directed to exports and not local manufacturers. This led to manufacturers calling for the duties to be lifted and imports reopened two months ago, citing rising steel prices and billet shortages in the local market, but the request was turned down.
What’s next? The plan to offer up additional billet production licenses was first pushed back with the recent cabinet reshuffle, and then again with the war on Iran, we were told. A firm timeline will likely be set out once stability and predictability return to the region, they added.
