The iron and Steel Industry in Egypt is stuck in a legal battle with the ministry of Trade and Industry since the beginning of this year. The Iron and Steel industry has been subjected to this battle about billets for quite some time. The integrated steel plants and hot rolled steel manufacturers initiated the battle after the Ministry issued a resolution number 346 in April. This imposed a temporary import tariff of 15% on iron billets and 25% on steel set for 180 days ending in October.
The crisis dates back to November 2018 after the ministry received a complaint from local steel manufacturers – Suez Steel Company, Ezz Steel, El Marakby Steel, and Kandil Steel.
The complaint called on the government to implement anti-dumping measures. This was in the wake of the global oversupply of billets and the tariffs imposed on iron and steel products.
Afterwards, the ministry examined the accuracy of the claims and found out that domestic steel sales were down by 18%. A drop of 13% in the market share of the domestic Iron and Steel industry. It also noted an increase of 124% in inventory, turning companies’ net profits into losses.
Iron and steel Industry in Egypt agreed that the ministry’s Trade Agreements Sector (TAS) did not meet with the industry’s concerned party. Since November 2018, the two parties have not met in order to look into the complaint of the integrated steel plants manufacturers about the issues they faced due to importing large quantities of billet.
The ministry’s April decision took hot rolled iron and steel manufacturers by surprise. They viewed it as “a favor to the integrated steel plants”. They also thought that it would expose consumers to monopoly because integrated steel plants control the billet pricing.
Consequently, hot rolled steel manufacturers have resorted to the administrative court to halt the decision of the Ministry of Trade and Industry… Read more>>