Sudden drop in free market exchange rate confuses Egyptian rebar market

According to information collected by market sources, traders in the Egyptian domestic market have continued to sell rebar at EGP 5,500/mt ($798/mt) ex-warehouse, including 8.5 percent VAT, while Turkish rebar offers to the country have softened by $10/mt since last week to $590/mt FOB, though these new prices have failed to attract attention.
 
Local sources indicate that the exchange rate of the dollar against the Egyptian pound has declined to 7.00 from 8.00 in the free market and this situation has caused confusion in the Egyptian rebar market.
 
Having targeted price increases this week, local steelmakers have started to maintain a wait-and-see stance on the back of this sudden decline in the exchange rate, while price increases are not expected in the country until the exchange rate settles down. Meanwhile, if the exchange rate can maintain its current levels, Egyptian mills may even reduce their rebar prices.
 
$1 = EGP 6.89