Algeria's commerce ministry has announced a ban on imports of galvanised flat steel from all origins.
The ministry has ordered banks to cease processing requests related to importing these steel products, although imports that were already in process before the announcement will not be affected.
The ban includes flat-rolled products of iron or non-alloy steel, with a width of 600mm or more, plated and coated. This includes coils, sheets, tubes and profiles.
"Local production cannot cover the market at all," a market participant said. Most steel mills in Algeria primarily produce long steel products. One source estimated local consumption of galvanised steel at about 200,000 t/yr, but multiple sources told Argus that consumption levels are actually above this.
Algerian steelmaker Sider El-Hadjar announced in January that it is increasing its capacity for long and flat steel output to 600,000 t/yr, double its levels from last year. Despite this increase, coated flat steel products will still not be sufficient to meet domestic demand, market participants said.
The decision made last week on the ban has led to concerns in the market about potential supply shortages. A trader told Argus that the government is likely to permit imports later, but with a licence, which could cause prices to rise in the local market.
