steel marketing study in morocco

2016

Eng.Shereif Hussiun

Kandil Steel Export Department

2/14/2016

Flat Steel Marketing Study Report- Morocco

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1. Moroccan Country/ Economic Fast Facts : • Geographical Location: Morocco is located in North West region of Africa. The geographical location

of Morocco is very advantageous as it is in the middle of two worlds Europe and Africa. • Population: 33.2 million. • Capital: Rabat city. • GDP per Capita: U.S. $3,900. • Currency: Moroccan Dirham. • Religion: Muslim • Area: 710,850 square kilometers • Language: Arabic, Berber, French. • Industry: Phosphate rock mining and processing, food, leather goods, textiles and steel. • Exports: Clothing, fish, inorganic chemicals, transistors, crude minerals, fertilizers.

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1. Flat Steel Business General overview in Morocco :

1. Hot Rolled Flat Steel Products -HR: HS Code 7208: Flat- Hot Rolled Steel products - width>/=600mm:

• Morocco's exports represent 0.02% of world exports for this product; its ranking in world exports is 61. • Morocco's imports represent 0.12% of world imports for this product; its ranking in world imports is 84.

2. Cold Rolled Flat Steel Products -CR:

HS Code 7209: Flat- Cold Rolled steel product – width >/=600mm:

• Morocco's exports represent closed to 0% of world exports for this product, its ranking in world exports is 72. • Morocco's imports represent 0.48% of world imports for this product; its ranking in world imports is 41.

3. Galvanized Flat steel Product GI:

A. HS Code 721049 : Flat-rolled steel coated product- width >/=600mm:


B. Product: 721230: Flat rolled steel coated product- width <600mm :


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4. Pre-Painted Galvanized Flat steel Product GI:

A. Hs code 721070: Pre-Painted Galvanized Flat steel Product GI:

• Morocco's exports represent 0.31% of world exports for this product; its ranking in world exports is 26. • Morocco's imports represent 0.18% of world imports for this product, its ranking in world imports is 85.

5. The Flat Steel Local Production in Morocco:

• The main only flat steel producer in Morocco is Maghreb Steel (MS). • Maghreb Steel was fully owned by the Sekkat Family. • Maghreb Steel employed approximately 1.500 employees. • Maghreb Steel (MS) produce HRC, CRC, steel plate Products (Production in 2014 ) as the followings:

1) Steel making plant: 254.298 MTon/Year. 2) Steckel mill: 296.052 M Ton/Year. 3) Plate Mill: 40.211 MTon /Year. 4) Cold Rolling Mill: 192.813 MTon/Year.

• Maghreb Steel (MS) previously delivered to the Moroccan market with a market share close to 90% since 2010 -2012. • Maghreb Steel (MS) is also exporting approximately 20% of its production to different countries. • At end of 2014, the Moroccan foreign Trading Ministry has imposed Anti-dumping new measures for GI & PPGI products to

safe Maghreb Steel (MS) domestic production with rates 22 % & 25 % for each imported ton of the same product from worldwide.

• These Anti-dumping new measures of GI & PPGI will decrease by 2% each year till be 16 % at 2018.

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1. Cold Rolled Flat Steel Products Market Study in Morocco:

List of Supplying Markets of CR Imported Products in Morocco:

• Product: HS Code 7209-Flat-Cold Rolled production:

Exporters

Trade Indicators

Imported value 2014

(USD thousand)

Share in Morocco's

imports (%)

Imported quantity 2014

Quantity unit

Imported growth in value between

2010-2014 (%,

p.a.)

Imported growth

in quantity between

2010-2014 (%,

p.a.)

Imported growth in

value between

2013-2014 (%, p.a.)

Ranking of partner

countries in world

exports

Share of partner

countries in world

exports (%)

Total export growth in value of partner

countries between

2010-2014 (%, p.a.)

World 93290 100 100343 Tons 83 78 30 100 -3

Spain 78431 84.1 85064 Tons 114 106 45 20 1.4 11

Italy 4332 4.6 4664 Tons 20 21 419 9 2.8 -4

United Kingdom 3205 3.4 2986 Tons 32 -43 14 1.9 4

Belgium 2815 3 3081 Tons 37 33 -71 4 6.5 -5

Turkey 2056 2.2 1916 Tons 29 160 68433 28 0.7 -7

France 1391 1.5 1841 Tons 64 97 219 17 1.6 -1

Netherlands 585 0.6 545 Tons -19 -23 -4 8 3.2 -3

Sweden 254 0.3 55 Tons 76 53 21 1 -10

China 96 0.1 71 Tons -27 2 15.4 8

Germany 82 0.1 72 Tons 7 6 -53 7 4 -4

Czech Republic 21 0 25 Tons 35 0.2 17

Portugal 21 0 23 Tons 7 40 46 0.1 27

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• HS Code 7209: Flat- Cold Rolled steel product – width >/=600mm:

• Imported Value USD & Supplying Countries Market Shares % in 2014:

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• Tariffs applied by Moroccan Government for the imported Cold Rolled Products from Egypt: • HS Codes 7208 & 7209 HR & CR Flat steel Products:

• List of importing markets of CR exported products by Morocco in 2014:

• Product: HS Code 7209-Flat-Cold Rolled Steel Products:

Importers

Trade Indicators

Exported value 2014 (USD thousand)

Share in Morocco's exports (%)

Exported quantity

2014

Quantity unit

Unit value (USD/unit)

Exported growth in

value between

2010-2014 (%, p.a.)

Exported growth in quantity between

2010-2014 (%, p.a.)

Exported growth in

value between

2013-2014 (%, p.a.)

Ranking of partner countries in world imports

World 683 100 851 Tons 803 -44 -43 -91

Cuba 434 63.5 503 Tons 863 -47 105

Cameroon 131 19.2 154 Tons 851 -46 86

Guinea 43 6.3 53 Tons 811 143

Senegal 39 5.7 48 Tons 813 -61 -60 -96 88

Spain 36 5.3 92 Tons 391 -60 -63 17

France 1 0.1 0 Tons 9

Tariff regime Applied tariff (as reported)

Applied tariff (converted)

Total ad valorem equivalent tariff

MFN duties (Applied) (Most-Favored Nation Tariffs) 2.50% 2.50% 2.50%

Preferential tariff for the League of Arab States 0% 0% 0% Preferential tariff for AGADIR countries 0% 0% 0%

Preferential tariff for Egypt 0% 0% 0%

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2. Galvanized Flat Steel Products Market Study in Morocco:

A. Galvanized Flat Steel Products Study ,>/=600mm wide:

• List of supplying markets of GI imported products by Morocco

• Product: 721049 Flat rolled coated with zinc,>/=600mm wide

Exporters

Trade Indicators

Tariff (estimated) applied by

Morocco (%)

Imported value 2014 (USD thousand)

Share in Morocco's imports (%)


Quantity unit

Imported growth in value between 2010-2014 (%, p.a.)

Imported growth in quantity between

2010-2014 (%, p.a.)

Imported growth in value between 2013-

2014 (%, p.a.)

Total export growth in value

of partner countries

between 2010-2014 (%, p.a.)

World 53569 100 51621 Tons 53 47 174 3

Spain 25768 48.1 26213 Tons 49 44 198 -4 0

Italy 14509 27.1 13271 Tons 526 634 310 9 0

France 6959 13 6535 Tons 191 179 276 15 0

United Arab Emirates 3558 6.6 2983 Tons 4 132 29 0

Belgium 1454 2.7 1510 Tons 30 35 122 -6 0

Greece 1297 2.4 1088 Tons -5 0

Korea, Republic of 19 0 18 Tons 12 17.5

Portugal 3 0 3 Tons -98 -2 0

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• Tariffs applied by Moroccan Government for the imported GI Steel - Products from Egypt: • Product: 721049 & 721230 for both Flat rolled coated Products

Partner Tariff regime Applied tariff (as reported)



Egypt

MFN duties (Applied) (Most-Favored Nation Tariffs) 17.5% 17.5% 17.5%

Preferential tariff for the League of Arab States 0 0 0

Preferential tariff for AGADIR countries 0 0 0

Preferential tariff for Egypt 0 0 0

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• HS Code 721049 : Flat-rolled steel coated product- width >/=600mm:

Imported Value USD & Supplying Countries Market Shares % in 2014:

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• List of importing markets of GI-exported products by Morocco in 2014:

• HS Code 721049 : Flat-rolled steel coated product- width >/=600mm:

Importers

Trade Indicators Exported

value 2014 (USD

thousand)

Share in Morocco's

exports (%)

Exported quantity

2014

Quantity unit


Exported growth in value

between 2010-2014 (%, p.a.)


2010-2014 (%, p.a.)

Exported growth in value between 2013-2014 (%,

p.a.)

World 4899 100 5496 Tons 891 -35 -35 -80

Cuba 1999 40.8 2054 Tons 973 63 -5

Algeria 759 15.5 931 Tons 815 0 3 102

Tunisia 647 13.2 817 Tons 792 -57 -9

Libya, State of 427 8.7 510 Tons 837 -23 -22 -96

Senegal 391 8 408 Tons 958 -14 -12 -38

Côte d'Ivoire 283 5.8 333 Tons 850 12 14 -59

Lebanon 194 4 212 Tons 915 -15 -13 78

Congo 115 2.3 103 Tons 1117 1 1 -32

Spain 42 0.9 89 Tons 472 -52 -48 -99

Portugal 41 0.8 40 Tons 1025 -59 -53

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• Exported Values USD of GI Steel Products by Morocco in 2014:

HS Code 721049: Flat-rolled steel coated product- width >/=600mm:

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B. Galvanized Flat Steel Products Study < 600 mm wide:

• List of supplying markets of GI imported products by Morocco

• Product: 721230: Flat rolled steel coated product- width <600mm :

Exporters

Trade Indicators

Tariff (estimated) applied by Morocco

(%) Imported value

2014 (USD thousand)

Share in Morocco's

imports (%)


Quantity unit


2010-2014 (%, p.a.)

Imported growth in quantity

between 2010-2014 (%, p.a.)

Imported growth in value between 2013-2014 (%, p.a.)

World 3620 100 3127 Tons 79 84 -30

Italy 1388 38.3 1147 Tons 217 244 4 0

Spain 1179 32.6 986 Tons 89 94 -63 0

Portugal 816 22.5 821 Tons 71 89 48 0

Turkey 192 5.3 153 Tons 0

Sweden 34 0.9 14 Tons 0

France 6 0.2 2 Tons -6 -23 -91 0

Belgium 4 0.1 3 Tons -45 -47 -43 0

China 1 0 0 Tons 20.3

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• Product: 721230: Flat rolled GI- steel product- width <600mm :

Imported Value USD & Supplying Countries Market Shares % in 2014:

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• List of importing markets of GI-exported products by Morocco in 2014:

• Product: 721230: Flat rolled steel coated product- width <600mm :

Importers

Trade Indicators



Exported quantity 2014

Quantity unit

Exported growth in value

between 2010-2014 (%, p.a.)


2010-2014 (%, p.a.)

Exported growth in value between

2013-2014 (%, p.a.)

World 1407 100 1665 Tons 17 21 -55

Algeria 1022 72.6 1205 Tons 1

France 214 15.2 237 Tons -8 -3 -88

Lebanon 101 7.2 119 Tons 7 8 -50

Portugal 33 2.3 30 Tons

Cuba 19 1.4 20 Tons -86

Spain 15 1.1 41 Tons

India 3 0.2 13 Tons

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Product: 721230: Flat rolled steel coated product- width <600mm :

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4. Pre-Painted Galvanized Flat Steel Products Market Study in Morocco:

• List of supplying markets of PPGI imported products by Morocco in 2014

• Product: 721070: Flat PPGI products:

Exporters

Trade Indicators

Tariff (estimated) applied by Morocco

(%)

Imported value 2014

(USD thousand)

Share in Morocco's

imports (%)


Quantity unit


2010-2014 (%, p.a.)

Imported growth in quantity between

2010-2014 (%, p.a.)

Imported growth in value between 2013-

2014 (%, p.a.)

World 18598 100 11296 Tons 25 31 15

Hungary 7438 40 3368 Tons 10 7 19 0

Italy 4973 26.7 4061 Tons 39 63 520 0

Spain 4024 21.6 2494 Tons 79 80 -42 0

Turkey 841 4.5 596 Tons 0

France 728 3.9 323 Tons -17 -19 344 0

Netherlands 441 2.4 369 Tons 168 34 -75 0

China 82 0.4 49 Tons -20 -22 22 19.4

United Arab Emirates 39 0.2 27 Tons 0

Tunisia 35 0.2 9 Tons -73 0

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• Imported Value USD & Supplying Countries Market Shares % in 2014:

Hs code 721070: Pre-Painted Galvanized Flat steel Product GI:

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• List of importing markets for the product exported by Morocco in 2014:


Importers

Trade Indicators



Exported quantity

2014

Quantity unit



2010-2014 (%, p.a.)

Exported growth in quantity

between 2010-2014 (%, p.a.)


2013-2014 (%, p.a.)

World 37047 100 34682 Tons 1068 -2 1 -18

Algeria 17918 48.4 17109 Tons 1047 4 6 -27

Russian Federation 6858 18.5 6258 Tons 1096 -19 -16 53

Spain 3212 8.7 3211 Tons 1000 9 9 -34

Cuba 3057 8.3 2750 Tons 1112 128 7738

Portugal 2035 5.5 1849 Tons 1101 -23 -23 248

Côte d'Ivoire 834 2.3 651 Tons 1281 116 13 0

Angola 775 2.1 671 Tons 1155

Libya, State of 689 1.9 739 Tons 932 139 -2 -90

Lebanon 680 1.8 595 Tons 1143 -1 0 -14

Congo 521 1.4 417 Tons 1249 22

Senegal 208 0.6 196 Tons 1061 0 7 235

France 207 0.6 192 Tons 1078 25 -37 -57

Netherlands 53 0.1 43 Tons 1233

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• Tariffs applied by Moroccan Government for the imported PPGI Steel - Products from Egypt:


• Flat steel Products customers/End-users classifications in Morocco : • There are more than 30 great Moroccan customers/End-users in flat steel industry who made the flat steel

trading actions in the last 4 years, they are classified as the followings: • Welded Tubes Industry. • Construction Industries. • Electrical & Cables industries. • Home appliances Industries. • Steel Traders & Service Centers.

Partner Tariff regime Applied tariff (as reported)



Egypt

MFN duties (Applied) (Most-Favored Nation

Tariffs) 25.00% 25.00% 25.00%

Preferential tariff for the League of Arab States 0 0 0

Preferential tariff for AGADIR countries 0 0 0

Preferential tariff for Egypt 0 0 0

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• Final Conclusion :

1) Moroccan Flat steel Market annual demands are so promising (They are approximately closed to 1Millon Ton/year)

2) There are many potential customers (More than 30 Customers) in that market through many different industrial sectors existing.

3) The imported growth rate for CR products quantity (between 2010 to 2014) is 47%. 4) The imported growth rate for GI-products quantity (>/=600mm wide) -between 2010 to 2014- is 53 %.1

5) The imported growth rate for GI-products quantity (width <600mm) -between 2010 to 2014- 83 %. 6) The imported growth rate for PPGI products quantity (between 2010 to 2014) is 31%. 7) The most strength exporting rate is PPGI Product, the exported growth rate for that Moroccan CR products

(between 2010 to 2014) is 1 % only. 8) The most weakness exporting rate of is CR Product, the exported growth rate for that company (between 2010 to

2014) is (- 43 %). 9) There are Anti-dumping new measures be imposed for GI & PPGI imported products with rates 22 % & 25 % for

each imported ton of the same product from worldwide.

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• Recommendations:

1) The main target is to open a new market for Kandil steel products in that booming country. 2) Therefore, we need to make flat steel prices study of the Moroccan domestic market. 3) This new market opening will be also possible even in case of those imposed MFN duties tariffs as Anti-

Dumping measures by Moroccan government -especially for GI & PPGI Products.(Because the market demands are so increased and flat steel importing competition is so diverted between international steel suppliers there!)

4) Some steel construction companies (The Main Target End-users for us) are exempted of that MFN duties tariff by special governmental decision in 2015 due to Maghreb Steel (The only national Producer) has some of the same manufacturing activities of those customers like corrugated sheets production lines .etc. For instance, société Métaux Profilage Isolation (MPI) Company in Casablanca city, Morocco. (www.mpiken.com).

5) Finally, we should also focus to increase our CR & Black annealed market shares in that market which are already approximetly exampled of MFN duties tariff 2.5 % only.

Thank you

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steel marketing study in morocco

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