UAE lifts rebar, wire rod import duty

The UAE has increased import duties on rebar and wire rod to 10pc, effective from 17 January.

The increased duty, up from 5pc, aims to protect the domestic steel industry. But the impact will probably be limited in the short term since the UAE has already significantly lowered its rebar and wire rod imports.

Other countries in the Gulf Co-operation Council (GCC) — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia — are expected to follow the UAE's lead, although no official confirmation from the other members has yet been issued. A recent increase in rebar production capacity in the region, concurrent with sharp falls in steel consumption as a result of falling oil prices, sharpened the competition between regional and international suppliers.

Foreign exporters such as Turkey have withdrawn from the GCC market because of competitive pricing policies and plentiful supply out of regional mills. Domestic demand in the Mideast Gulf remains weak, as new infrastructure projects have been on hold because of lower oil prices. Abundant supply, coupled with muted demand, led Saudi Arabia — which has the largest crude steel production capacity in the GCC — to commence steel exports in 2016-17.