Egyptian steel industry representatives are calling for measures that would require importers to open letters of credit (L/Cs) if they want to buy steel from Turkey.

The calls are the result of concerns expressed by Egypt's Chamber of Metallurgical Industries (CMI) that the country's own steel industry is suffering from harsh competition from cheaper Turkish imports.

Decisions reached

The CMI has called several times on the country's ministry of trade and industry to introduce measures to curb Turkish steel imports.

Now, the chairman of National Port Said Steel, Khaled Al-Bourini, has told local media that decisions have been reached at a CMI meeting for measures aimed at capping the amount of steel imported from Turkey.

Slow down

"They will not stop the imports altogether, but they will slow down the rate to protect the local steel industry," said Al-Bourini, who is also a CMI member.

One of the decisions is a demand that the Central Bank of Egypt limits steel imports by requiring that all L/Cs for Turkish steel imports are fully cash-covered and not allowing such imports to be paid for on cash on delivery terms.

Importers of steel reject the CMI's point view of the damage done by Turkish steel imports, arguing that they are actually helping lower the price of Egyptian steel.

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