MONTHLY FLASH JUNE 2020
Last update : 23 Juin 2021 11:01
- Non-hydrocarbon export
Imetal will export 20,000 tonnes of concrete reinforcing bars to Mali and Niger. A memorandum of understanding was signed on the 29th of the month between Algerian Qatari Steel (AQS) and Tamaga.. Transport will be provided by sea (Jijel - Dakar). The contract is for one year, renewable. On the other hand, the private Algerian group Chloral will carry out its first export operation on July 15. These exports are destined for Europe, the United States and Canada. Valued at $ 89 million, the quantity to ship is in the order of 1,500,000 tonnes. This single export operation will increase non-hydrocarbon exports by more than 15%. In the future, this company plans to export water treatment salt and food salt. All these salts are produced at the Djebel El Maleh deposit which is considered to be one of the largest surface deposits in Africa.
- Sonatrach and Total extend their LNG contract for three years
On the 25th of the month, Sonatrach and Total have signed an agreement renewing their partnership in the liquefied natural gas (LNG) sector for a further three years. This agreement will ensure a supply of the French market with Algerian LNG up to two million tonnes / year. This contract will strengthen France position on the continent to re-export more LNG, from all origins, to Spain, Italy and Switzerland.
- Hydrocarbons Law
The implementing texts of the new law on hydrocarbons will soon be debated at the level of the Government before being submitted to the Council of Ministers and finally to the NPA. This law aims, among other things, to increase investment in the field of hydrocarbons within a period not exceeding the next seven years. The objective is to explore more areas and thus ultimately increase hydrocarbon production. At this time, only 38% of the national mining domain dedicated to hydrocarbons is exploited. The overall area is estimated at 1.5 million square kilometres.
- Algiers Stock Exchange: Withdrawal of NCA Rouiba
NCA Rouiba shares will no longer be listed from July 26. The proposed PRO (public repurchase offer) concerns more than 2 million shares to be repurchased; or 25% of the capital. The nominal value of the share is 100 dinars. The share repurchase price was 258 dinars. The operation was opened on June 14 and will close on July 14.
- Council of Ministers: the fear of twin deficits.
The Council of Ministers, which met on the 14th of the month, decided on measures having for finality to reduce the trade balance and that of payments. The first decision is to no longer resort to foreign offices when local supply is available. This is to relieve, a little, the balance of services. It was also decided to increase the national maritime fleet to save on foreign exchange freight. Along the same direction, it was decided to evacuate foreign operators from dry ports. In addition to other measures taken in the mining and industrial sector, it is expected to save spending in the order of $ 6 billion.
- A new list of products submitted to the ASD
The current list of products submitted to ASD will be expanded. This is what the Minister of Commerce announced after the Council of Ministers held on the 14th of this month. This new list is expected to increase national production and reduce imports. Since its implementation, no significant reduction in imports has been noticed.
- Signature of a framework convention between the Post and the Ministry of Micro companies
A framework convention between the postal and telecommunications sector and that of micro companies and start ups was signed on the 13th of this month. The purpose of this convention is to encourage the emergence of youth projects in the area of modernization of the telecommunications network. Better training is also sought in this highly technical sector and the ability of these young entrepreneurs to benefit from certain provisions provided for in the texts for access to public contracts.
- World Bank forecasts
The World Bank has just revised downwards its growth forecasts for Algeria for the current year. In its April report, the forecast was for a recession of 5.2%. For the June report, this recession will be more severe (-6.4%); or more than one percentage point of additional growth loss. The Algerian government has predicted a 2.6% recession in the 2020 complementary finance law. The recovery for 2021 is estimated at less than 2% (+ 1.9%), contrary to the forecast of last April (+ 6.2%).
- Trade balance (1st quarter)
Algerian customs have published, on the 7th of this month, foreign trade data for the first quarter of this year. It should be noted an increase in the deficit to 1.5 billion dollars; or an increase of more than 26% compared to the 1st quarter of 2019. Imports, which amounted to more than $ 9 billion against more than $ 11 billion, could not start the more significant drop in exports which stood at more than $ 7 billion against $ 9.5 billion on the 1st quarter of the previous year. Even non-hydrocarbon exports, which are very marginal, have fallen. Indeed, they went from 658 million dollars in the 1st quarter of 2019 to approximately 579 million dollars in the 1st quarter of this year.
- OPEC + extends its reductions until the end of July
OPEC + will extend by one month the production cutsbacks, decided on last April, in order to further support the recovery in oil prices. This decision was taken at the 179th meeting of the OPEC held by video conference on the 6th of the month. As a result, the drop in production is maintained at 9.7 million barrels / day until the end of July instead of reducing it to 7.7 million barrels / day by the end of this month of June. But despite this announcement, the price of oil had a bad ending this month. Indeed, the market reacted well to this announcement to bring the price of Brent up to 23 dollars per barrel around the 22nd of the month after having started the month at 39 dollars per barrel. It ends the month at around $ 41 a barrel.
 Société de droit commercial algérien spécialisée dans l’exportation.
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