Egypt has implemented a temporary tariff on rebar imports of either 7.3% or EGP 290/tonne ($41/t), whichever is greater, with immediate effect, Kallanish hears from local market sources. The duty is valid for up to 200 days, and will protect local steelmakers while the trade and industry ministry conducts an investigation into whether safeguard measures are required.

Egypt previously levied a 6.8% duty on rebar imports in November 2012, also for 200 days. This was after local mills had lobbied the government on account of high energy prices and a large tonnage of Turkey-origin imports were entering Egypt at a time of weak demand. Turkish exporters consequently lost one of their largest markets. This duty was allowed to lapse in June 2013 after imports dried up.

Now the attention has been refocused on the potential threat from Chinese imports, following the slump in iron ore prices. The Egyptian metallurgy chamber estimates 35,000-50,000 tonnes of Chinese rebar has arrived in Egypt since July, while contracts are understood to have been signed for further shipments. This is significant given that Chinese product had been absent from the Egyptian market for a decade.

The irony is, traders tell Kallanish, that China-origin rebar, currently below $500/t CFR Egypt, will still be cheaper than domestic product even when taking into account the latest duty, which is levied on the CFR price. The government is now mulling whether to launch either an antidumping or a countervailing duty investigation, while both could simultaneously take place.