Ezz Steel, a leading figure in Egypt's metals industry has recently advocated for stronger import protection measures to defend the domestic sector against the challenges posed by cheaper foreign metals. This call for action comes as local manufacturers struggle to compete with the influx of lower-priced imports, which have been eroding the competitive edge of Egyptian-produced metals.
The industry leader underscored that rising global market volatility and increasing raw material costs have exacerbated the difficulties faced by domestic producers. Without protective policies, the local metals sector could experience severe repercussions, including potential job losses and diminished industrial output. To counteract these threats, the proposed measures include the introduction of import tariffs and the enforcement of stricter regulations to foster fair competition.
These suggested protections aim to preserve the health of Egypt's metals industry, a critical component of the national economy. Government officials are currently assessing the proposal's implications for both the industry and consumers. The decision on these protective measures will be pivotal in determining the future viability and competitiveness of Egypt’s metals sector in the global market.
In a related development, Ezz Steel highlighted a positive medium-term outlook for the national steel market while advocating for increased import protection. Ezz Steel's optimism is attributed to the recent liberalization of the foreign exchange market and the stabilization of the national currency, which have bolstered the broader economy. New construction sector regulations are expected to further drive project implementation and new ventures.
However, Ezz Steel has raised alarms over a recent surge in imported logs following the easing of foreign currency access. As an integrated producer, Ezz Steel faces significant challenges since 90% of the value of rebar production relies on imported inputs. Additionally, the company reported a 21% rise in hot-rolled steel imports in the first quarter of 2024, reaching 175,000 tons.
Ezz Steel has also highlighted the impact of new EU quotas that restrict the export of Egyptian hot-rolled steel to Europe, effective July 1. To address these issues, Ezz Steel has proposed increasing import duties on billets and hot-rolled steel. Currently, the import duty rates are set at 0% and 5% respectively, which are considerably lower compared to other markets where tariffs range from 10% to 25%. The company believes that raising these duties is crucial for protecting the domestic steel industry from foreign competition and ensuring its continued growth and contribution to the national economy.
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