Egyptian rebar traders focus on sales without considering profit margins

The Egyptian rebar market has remained depressed. According to market sources, traders have been trying to sell rebar without considering their profit margins, while the lowest rebar offers in the market have been heard at EGP 5,130/mt ($684/mt) delivered, including eight percent VAT. Egyptian buyers state that local prices are more advantageous than import offers at the moment. Shortages in availability of the US dollar and the free market exchange rate of around 7.5 for the dollar against the Egyptian pound have contributed to the diminishing interest in imports.
 
Meanwhile, ex-Turkey rebar offers to the Egypt are at $580/mt FOB, though local buyers indicate that Turkish rebar offers should range at $570-575/mt CFR on actual weight basis in order to receive demand.
 
On the other hand, Turkish billet offers to Egypt, which are at $525-535/mt FOB, have also failed to attract attention in the region, while ex-CIS billet offers are considered to be more tempting and lately an ex-CIS deal has been concluded in Egypt at $530/mt for 10,000-15,000 mt billet, for late June shipment.