Following the significant drop in domestic rebar consumption in May due to Covid-19 restrictions and their consequences, in June Egypt saw a significant rebound. According to local sources, in June rebar consumption in Egypt reached 658,000 mt, versus only 312,000 mt in May. This is a result of some projects resuming construction activities and the easing of some restrictions aimed at tackling the coronavirus.
The development clearly supports local rebar producers who have had some challenging months in terms of sales and profitability. The month of July, however, may be somewhat challenging for the mills. “There is a stoppage of building licenses except for governmental and mega projects, as well as the ongoing issues of reconciliation of violations for some existing buildings, which have caused a lull in the activity of private contractors,” a local manufacturer told SteelOrbis.
