It appears that the decision by the Moroccan Ministry of Industry and Trade to launch an official anti-dumping investigation into the cold-rolled steel sheets market, starting on October 14, has angered Egyptian steel producers and exporters. This investigation was initiated following an official request from the sole Moroccan company producing this type of sheet metal, alleging market dumping. Egyptian producers and exporters, however, denied any deliberate attempt to flood the Moroccan market with steel products.
According to Egyptian media, local exporters attributed the growth in cold-rolled steel sheet exports to Morocco to their lower prices compared to competitors, particularly China, due to lower manufacturing and shipping costs.
Hassan El-Maraghy, Chairman of “El-Maraghy Steel,” stated in a press interview that “tensions in the Red Sea have raised shipping costs for competitor countries like China, making Moroccan companies prefer to import from Egypt due to the lower prices.”
Walid Gamal El-Din, head of the Export Council for Building Materials, Refractories, and Metallic Industries, revealed that “Morocco informed the Export Council of its intention to impose anti-dumping duties on steel sheets. In response, the council, in cooperation with the Ministry of Investment and Trade and exporting companies, is working to prove that this competition is fair and does not violate any legal conditions.” He added that the council is preparing a report outlining production costs, shipping prices, and customs duties until the product reaches Morocco. This report will be submitted to Moroccan authorities and will also propose the principle of reciprocity. In other words, if Morocco imposes duties on Egyptian steel exports, a request will be submitted to impose duties on Moroccan car exports to the Egyptian market.
It should be noted that imports of cold-rolled steel sheets have seen an unprecedented increase of 343% in one year, reaching 6,049 tons by the end of May 2024. The Moroccan Ministry of Industry and Trade confirmed that this upward trend in imports represents a direct threat to the sole national producer of these sheets. The investigation will cover the period from July 1, 2023, to June 30, 2024, to assess potential dumping activity. Additionally, the investigation will evaluate the damage caused by analyzing the impact of these imports on the local steel industry, based on data from January 1, 2021, to June 30, 2024. The investigation focuses on cold-rolled steel sheets, known for their smooth surface and formability, which are used in various industries such as construction, home appliances, HVAC systems, and packaging.
