Algerian rebar import market sees new trade barriers

06/03/2013 12:00 - 451 Views

The Algerian government at the beginning of February imposed new tax barriers affecting the import of rebar and other steel products from the 17 countries which are part of the great arab free trade agreement (GAFTA), Platts learned from sources in the market.

The authorities published a list of goods (including rebar) which, starting from February 1, have been excluded from benefitting from the GAFTA import duty exemption.

As a result, rebar imports from the GAFTA countries (including Egypt, Morocco, Libya and Tunisia) are now subject to a 15% import tax, making it uneconomical even for nearby countries such as Morocco to trade with Algeria, one of the largest rebar importers in the world, two sources noted.

EU suppliers remain the only competitive suppliers the Algerian market, being exempted from any import duties. In 2012 Algeria imported over 4.5 million metric tons of steel products, mainly rebars and longs for the construction sector.

During 2012, as a result of the weakness of the local Moroccan market and the overcapacity installed in the country, Sonasid, the main Moroccan rebar producer, sold some 100,000 mt of rebar to Algeria, according to a source. This year the company was aiming at increasing further this tonnage, but is believed to be re-thinking this plan following the government’s decision on import duties.

04/03/2013 08:37:01

Source: arabsteel.info