The Gulf Cooperation Council’s trade defence body has recommended definitive steel safeguard measures are imposed to protect the bloc’s steel industry from further injury. However, it has not stipulated what those measures should be. Hot rolled coil has meanwhile been removed from the purview of the investigation.

The GCC-Bureau of Technical Secretariat for Anti Injurious Practices in International Trade (GCC-TSAIP) launched the investigation in October 2019 (see Kallanish passim). Last July it made a preliminary determination that the increase in imports has caused serious injury to the bloc’s steel industry; however, no preliminary duties were imposed.

The authority has now determined the exclusion of the following HS codes from the probe: 720827; 720837; 720838; 720839; 720851; 720853; 720854; 721113; 721114; 721119; 720916; 720917; 720918; 720926; 720927; 720928; 720990; 722550; 730640; 730619; 730611; 730531; 730520 and 730424. These include hot and cold rolled coil, as well as plate.

Added to the investigation, meanwhile, have been HS codes 721230; 722300; 722100; 721790; 721730; 721720; 721710; 722990; 722920; 730110; 730890; 730840; 730590 and 730431. These include hot-dip galvanized coil below 600mm wide, sheet piling and various types of wire and stainless wire rod.

Rebar and wire rod remain subject to any measures imposed, despite imports of these products into the GCC falling to minimal tonnages in recent years.

“The Gulf industry confirmed that imposing preventive measures serves the public interest of the Gulf, as the iron and steel industry plays a pivotal role in the Gulf economy,” GCC-TSAIP says in its investigation report. “There is currently sufficient production capacity in the GCC countries to meet the Gulf demand, and therefore the users or customers will not be affected by imposing preventive measures.”

“In the event that the final measures are not imposed, the prices and market share of the Gulf industry will decline further in favour of the increasing imports at low prices, which will continue to flow to the GCC countries to acquire a greater share of the Gulf market,” the authority continues.

GCC authorities will meet soon to make a final decision on the safeguard measures. Market participants agree that measures are likely to be imposed, but it remains unclear what the extent of the measures will be. One GCC mill source reacted cynically to the news of likely measures: “It’s irrelevant when we have overcapacity,” he says.