Jordan has ceased safeguard measures on rebar and wire rod imports initially implemented in June 2013, according to a World Trade Organisation notification.

The safeguard measure was in the form of a surcharge amounting to JD 80/tonne ($113) in the first year, JD 70/t in the second year and JD 60/t in the final half-year. It applied to products under HS codes 7213105, 7213209, 7213919, 7214105, 7214205, 7214305, 7214915, 7214995, 7215105, 7215505, and 7215905.

A Jordanian trader tells Kallanish the latest development is unlikely to result in a change in imported rebar tonnages as Jordan has a 36,000 tonnes/rebar quota. “Even if you have the best price you cannot exceed this quota,” he observes.

However, another trader says this quota is not always enforced, and the safeguard measure cessation could therefore drag down rebar prices in Jordan by a further $25/t. “It’s a significant reduction, but not when you consider Jordanian rebar prices have come down $10/week over the last 3-4 months,” he says.

This is despite Jordan’s 25% duty on rebar imports, which remains in place. Jordanian mill rebar prices are currently at JD 300/tonne ex-works ($423), including 8% sales tax. China-origin rebar prices, meanwhile, are at $270-275/t cfr Aqaba, which equates to JD 283/t delivered in Amman even when all costs, including the import duty, are factored in.

Traders are willing to buy from China at this cost differential, the trader says, while Jordanian mills are selling at cost, and in some cases even below. The country’s largest steelmaker, Jordan Steel, continues to produce rebar from imported billet after idling its EAF meltshop in January 2015. Semis are offered from China and Iran, the two main sources, each at $265/t cfr Aqaba.

Steel demand in Jordan has taken a hit in the last two weeks, traders say, because rains have affected construction activity – this is typical for this time of year.