The European Union is preparing to impose anti-dumping tariffs of 15.6 per cent on iron and steel imports from several countries, including Egypt, Japan, and Vietnam, by mid-April 2025. This move could impact Egypt’s competitiveness in the European market, a key destination for its steel exports.
In addition, the European Commission has said that the EU reserves the right to impose an additional 25 per cent tariff on import volumes exceeding 894,000 tons between January 2025 and June 2026.
Ezz Steel, Egypt’s sole source of hot-rolled flat steel to the EU, received a notification from the European Trade Commission last August to the effect that it had initiated an anti-dumping investigation into imports of hot-rolled flat steel from Egypt, India, Japan, and Vietnam following a complaint filed by the European Steel Association.
According to a company official who spoke to Asharq Bloomberg, the company is preparing to file an objection. The parties concerned have a three-week period to object, with the final ruling expected in October.
The EU is Egypt’s largest market for hot-rolled steel exports, importing around 700,000 tons annually valued at $400 million. Hot-rolled steel sheets are used in shipbuilding, automotive manufacturing, and construction.
The Egyptian industry is actively seeking alternative markets to maintain export volumes, Mohamed Hanafi, director of the Chamber of Metallurgical Industries at the Federation of Egyptian Industries, told Al-Ahram Weekly.
He said that Egypt’s iron and steel industry relies on 90 per cent imported raw materials, making export revenues crucial for securing foreign currency. Egypt produces 13 million tons of iron and steel annually, of which seven million tons are exported.
Hanafi added that the EU’s decision follows the recent tariffs put by the US on steel and aluminum imports, which also targeted EU member states as part of broader protectionist policies.
The US has been the primary export market for iron and steel articles from the EU, importing eight billion euros worth, a 45 per cent increase from 2019. Other significant export destinations include the United Kingdom (6.3 billion euros), Switzerland (3.5 billion euros), Norway (2.9 billion euros), and China (2.8 billion euros), according to Eurostat.
Another factor exporters must prepare for is the prospective end of the war in Ukraine, one of the world’s largest steel exporters. With the end of the war, it could re-enter the market at full capacity, intensifying competition for Egyptian products.
This would put additional pressure on Egyptian exporters, who already face stiff competition from other major steel-producing nations.
Given the potential setbacks in the European market, Egyptian producers are focusing on expanding into alternative regions, including Africa, Latin America, and East Asia, where demand remains strong, and shipping costs are relatively lower.
The EU’s anti-dumping tariffs are not a new phenomenon, as the bloc has long imposed quota-based trade restrictions to protect its domestic industry. However, some countries exporting five times more than Egypt remain exempt from these tariffs, raising concerns about the fairness of the measures, said one expert who preferred to remain anonymous.
Global annual steel production stands at 1.4 billion tons, with Egypt contributing less than one per cent of that figures, the source pointed out.
Egyptian exporters are now exploring legal options within the framework of World Trade Organisation (WTO) regulations to safeguard Egypt’s trade agreements and maintain access to the European market, he added.
According to Eurostat, in 2024 China was the leading supplier to Europe, accounting for 12.5 billion euros, or 37.3 per cent, of the EU’s total imports of iron and steel articles. Other major import sources included Turkey, the United Kingdom, the United States, and India. Imports from Turkey, India, and China saw remarkable increases of 82.4 per cent, 40.5 per cent, and 37.0 per cent, respectively, compared to 2019.
Industry experts warn that even a two per cent increase in Egyptian steel prices could undermine its competitiveness in Europe, particularly with the additional burden of anti-dumping tariffs. Global steel prices currently range between $500 and $580 per ton, and ongoing market fluctuations could impact profitability.
Analysts believe that securing new export markets for Egyptian iron and steel is the most effective strategy to mitigate risks before resorting to production cuts. Despite the challenges, domestic steel consumption in Egypt remains below potential levels, and in the event of economic recovery local demand could triple, absorbing more of the country’s production.
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