Saud Arabia has indefinitely postponed plans to increase customs duties on a variety of steel products to the maximum “bound rates” permitted by the World Trade Organisation, Saudi steel market sources tell Kallanish.

Saudi Customs communicated the news in a tweet on 11 June, one day after the increases were due to come into effect, without providing any justification for the postponement.

The authority did not respond to a request for comment before deadline.

The customs duty on billet was due to rise from 5% to 10%, the tariff on hot rolled flat products to increase from 5% to 10-15%, depending on the product, and on coated flats from 5% to 12-15%, depending on the product. The tariff on wire rod was to hike from 10% to 20%, and on rebar to grow from 10% to 15%.

The new date for application of the higher duties will be announced in due course, Saudi Customs says.

Saudi market sources are unsure why authorities have made the abrupt U-turn. However, one mill source says importers had lobbied authorities to review the decision because it would have increased their production costs. After all, Saudi Arabia remains a net steel importer.

Saudi imports from Turkey of HS code 720711 billet returned in April fter trade slowed significantly following sizeable tonnages booked in the first half of 2019 (see Kallanish passim).

The Gulf Cooperation Council continues to carry out its safeguard investigation launched last October against a wide range of flat, long and tubular steel products.