Egypt’s steel exports to Europe witnessed a dramatic decline of 90% [1] in January, according to a recent report. The sharp drop comes as the European Union prepares to impose a 15.6% anti-dumping duty on hot flat steel imports starting April 7. This development has significantly impacted Egypt’s steel trade with key European markets, including Turkey, Spain, Italy, and Romania, where exports fell by 84% to 98%.
The decline in European exports has been attributed to the EU’s efforts to protect its domestic steel industry from unfair competition. The proposed anti-dumping duties aim to curb the influx of cheaper steel products from non-EU countries, including Egypt. In response, Egypt’s Ministry of Industry has formed a committee to engage with European officials and discuss the rationale behind these measures.
Despite the setback in Europe, Egypt’s steel exports have found alternative markets. January saw a notable increase in shipments to Brazil, Saudi Arabia, Lebanon, and Sudan. This shift highlights the adaptability of Egyptian steel producers in navigating changing trade dynamics.
Egypt’s steel industry has an annual production capacity of two million tonnes, with approximately half of this output traditionally exported, primarily to Europe. The new EU measures, however, are expected to force Egyptian producers to diversify their export destinations further.
To address the challenges posed by the EU’s anti-dumping duties, Egyptian officials are exploring strategies to strengthen the competitiveness of the country’s steel industry. These include enhancing production efficiency, expanding into new markets, and fostering partnerships with international stakeholders.
The upcoming months will be critical for Egypt’s steel sector as it seeks to mitigate the impact of the EU’s trade policies and maintain its position in the global market. The outcome of discussions between Egyptian and European officials will likely play a pivotal role in shaping the future of Egypt’s steel exports.
Sources:
[1] Egypt’s steel exports to Europe fall by 90% in January: Report https://www.zawya.com/en/projects/industry/egypts-steel-exports-to-europe-fall-by-90-in-january-report-r0p442nf