Honduras' steel industry is worried over the possible exclusion of the country's existing antidumping duty of 15% over all types of imported rebar, market sources said Monday.
Several sources said the government is studying the possibility of excluding the antidumping measure in the coming months, which would "harm local operations," they said.
"Most of the rebar consumed domestically is produced in Honduras, and the rest enters mainly from Central American countries," one source said. "But without the AD tax, imports could increase significantly."
Another source explained that if the antidumping duty is eliminated, there will be a flurry of foreign material that could negatively impact local competitiveness. "In that way, recent investments from mills could be also affected," he said.
Market players said the domestic market is also worried the construction sector could be impacted by the type and quality of the imported products.
According to Latin America steel association Alacero, Honduras' finished steel consumption decreased 7% year on year during 2016, and also showed a 2% decrease in first two months of 2017.
The country's average steel consumption is around 340,000 mt/year, which accounts for both flat and long steel products.
Currently, 3/8-inch rebar, commonly used by the construction industry in Honduras, is being sold from distributors to end-users below $600/mt FOB, excluding taxes.
Honduras is home to two mills: Aceros Alfa, which produces mainly rebar and has an installed capacity of 200,000 mt/year; and Aceros Centro Caribe, which produces rebar, sections and sheet, with installed capacity of 36,000 mt/year of steel products.
