World Bulletin/News Desk
Several Egyptian traders on Wednesday said that a possible imposition of anti-dumping duties by the Egyptian government against rebar imports from Turkey would make it more likely that producers would raise the prices of locally-made rebar in the future.
They said that Egyptian rebar giant Ezz Steel stands to benefit the most from such a move.
Egypt's Anti-Dumping Agency announced last Monday that it would consider imposing anti-dumping duties against concrete iron imports from Turkey. The agency cited the presence of large amounts of low-priced Turkish construction steel in the Egyptian market.
Chairman of the Construction Materials' Section at the Egyptian Federation for the Chambers of Commerce Ahmed al-Zeiny said any anti-dumping duties against Turkish reinforcing bar imports would raise the price of every ton in the local market by 500 Egyptian pounds ($72).
He said this would bring the price of the one ton of construction steel in the market to 5,500 ($792).
"Local rebar producer Ezz Steel, which has a market share of 60%, stands to benefit the most from this situation," al-Zeiny told Anadolu Agency over phone.
He said other local producers Beshay and Suez have a market share of 25% only, while the remaining market share is distributed among other small rebar producers.
Last December, the Egyptian Ministry of Industry and Foreign Trade imposed temporary countervailing measures, amounting to 6.8% or 299 pounds ($43) per every ton of imported rebar. These measures were applied for 200 days only. They expired last June.
Al-Zeiny said the measures had led to raising the prices of locally-produced concrete iron. He added that the rise in the price of the one ton of rebar amounted to 800 Egyptian pounds ($115).
The Egyptian Central Agency for Public Mobilisation and Statistics says the price of the one ton of reinforcing bar reached 4,240 pounds ($610) in November of last year. One month later, however, the price reached 4,409 ($635) per ton, but this was after the countervailing measures were imposed, the agency said.
The price of the one ton of concrete iron has reached 5,042 ($726) in August.
Al-Zeiny told AA last Monday that Turkish rebar constitutes 4% only of the total rebar amounts in the Egyptian market. He said out of a total amount of 500,000 to 600,000 tons of rebar present in the local market, only 20,000 came from Turkey.
However, the Manager of the Metal Industries Chamber at the Egyptian Federation of Industries Mohamed Hanafi did not expect producers would raise the price of locally-made reinforcing bar if the government imposed anti-dumping duties against Turkish rebar imports.
He attributed the current increase in the price of rebar in the local market to the rise in the exchange rate of the US dollar.
He said more than 85% of steel industry inputs are imported from other countries.
"The local rebar production stands at between 500,000 and 700,000 tons every month," Hanafi said. "Only 50% of this amount is sold, which means that the prices will not rise."Last Mod: 12 Eylül 2013, 11:16