Speaking at the SteelOrbis 2023 Spring Conference & 88th IREPAS Meeting held in Barcelona on May 7-9, Eng. Ahmed Ezz, chairman of Egypt-based Ezz Industries, stated that the MENA and Gulf region are facing deteriorating market conditions mainly due to increasing high grade iron ore prices. He does not anticipate any economic growth in the given regions in 2023 due to fiscal constraints, inflationary shocks and exchange rate regime issues.
Meanwhile, stating that the two drivers of steel demand growth will be Egypt and Saudi Arabia in the coming years on the back of new investments, the chairman of Ezz Industries said that other Arab countries such as Libya, Iraq and Yemen will also play an important role in the increase in steel demand beyond 2023.
Regarding prices, noting that prices of DR pellets, which are the main raw material used by Ezz Steel, were at $100-150/mt CFR in 2015-19 and are currently at $165/mt CFR, he said that the prices will soften in the coming period with the balancing of supply and demand.
In addition, the company has an annual production capacity of 4.7 million mt of rebar and wire rod in multiple steel grades. According to the Ezz Steel chairman, the company has plans to invest in new plants in Egypt, mainly for the production of rebar.