Egypt’s Ministry of Trade and Industry has revoked the 25% and 15% safeguard duties on imports of rebar and billet respectively. The measure was imposed in April 2019 and had been due to lapse in April 2022.

Trade and industry minister Nevine Gamea announced the ministerial decree to suspend the measure, under resolution No. 907 of 2019, effective following the date of its publication in the official Egyptian Gazette, likely to be this week.

Gamea says: “The decision aims to support the industrial sectors when there is a significant rise in energy prices, freight and raw materials, in addition to global-scale high inflation. These all negatively impact Egypt’s production and export sectors, stressing the ministry's keenness to support all industrial sectors, especially since the industry sector represents a major locomotive for the national economy.”

"There is a shortage of semis in the market; that's why the government made a good decision for the re-rollers who have been vulnerable since April 2019,” an Egyptian trader tells Kallanish. “After lifting safeguard measures earlier than scheduled, billet imports for manufacturing will be tax-exempt; on the other hand, for rebar there is still a valid customs duty, so we don't expect rebar flow into Egypt.”

"Egyptian re-rollers will demand billet, which will impact billet prices,” observes a senior mill official. “The government's decision came unexpectedly and this will favour re-rollers without any doubt.”

Since the move was announced, Egyptian re-rollers have already started enquiring with regional merchant billet suppliers about possible purchases, sources point out, adding that this should support prices.