Egypt's iron tariffs threaten some of its own companies
The Egyptian government’s new temporary import fees have sparked controversy among Egypt’s steel rerolling factories, which rely on imported iron billet to produce rebar.
CAIRO — Some of Egypt's steel industry rerollers have halted production and sales in the face of protectionist duties the country recently began levying on some imports. One industrial organization says the tariffs could lead to the loss of thousands of jobs.
The tariffs aim to protect domestic iron billet makers from foreign competitors. Large steel processors make their own billets and therefore don't rely on imports, but local steel rerollers and small factories are caught in the middle.
As of April 23, at least eight rerollers had stopped production after the Egyptian Ministry of Finance on April 15 started collecting duties of as much as 15% on iron billets and 25% on steel rebar. The tariffs are to be imposed for 180 days but could be renewed.
Egypt produces an estimated 7 million to 7.5 million tonnes (7.1 million to 8.27 million tons) of steel per year. In a Jan. 13 interview, Reuters quoted the Al-Marakby Steel Co. CEO Hassan Al-Marakby as saying that Egypt's steel industry makes up about 3.2%, or 84 billion Egyptian pounds ($4.9 billion as of April 29), of the country's gross domestic product.
