The Egyptian government’s latest exemption decision for some producers like pipe makers, re-rollers and service centers from the 10% additional duty imposed on finished steel products on June 24, could support especially Turkish flats exports to that country, which have already risen notably this year, a general manager of a Turkish re-roller and a trading company told Platts July 22.
“As our Egyptian buyer’s costs rose unexpectedly with that duty decision, it could hit our exports to that country, ” the manager said, adding that the latest exemption decision will help them continue their shipments to that country.
“It seems that with the exemption decision only Egyptian traders will be subject to that duty. But, I heard that they also made an appeal to the government against that additional duty,” he said.
Drawing attention to the conflict between Turkey and Egypt regarding Libya the manager said the political relations between the countries are also important for the sustainability of trade activities.
Although Turkish mills’ rebar exports to Egypt remained low, due to a 25% duty, Turkish mills’ flat steel exports to that country increased notably year on year in the first five months of 2020.
According to Turkish Statistical Institute (TUIK) data, Turkish mills exported 228,000 mt of HRC to Egypt in the first five months of the year, sharply higher than 69,400 mt exported in the same period the previous year.
Turkey’s total HRC exports to that country totaled 287,585 mt in full-year 2019. But this export figure is also significantly higher than the 107,000 mt exported in 2018.
Turkish mills’ cold-rolled coil exports totaled 14,400 mt in the first five months of 2020, more than double year on year, while Turkish mills’ exports of coated coil in widths of 600 mm and above to that country totaled 29,600 mt in January-May 2020, higher than the 22,800 mt exported in the same period of 2019, Platts observed from the TUIK data.
— Cenk Can
