The Egyptian HRC producer has started offering for export for its new round of shipments. The supplier is currently in the market to sell for February and has increased its price over the past month. Moreover, some foreign buyers have accepted the new price levels for medium lots, although generally the supplier’s price is not considered to be cheap. Local HRC prices in Egypt have remained unchanged for now, while import offers have increased over the same period.
Currently, Egypt is offering HRC for exports at $545-550/mt FOB, up from $530-535/mt FOB in the previous round of deals. Around 10,000 mt have already been sold to Turkey at $557/mt CFR, according to Turkish market players, while the initial offers stood at $560/mt CFR. “It is a high price. I think most Turkish buyers were closer to $545-550/mt CFR in their bids,” a source told SteelOrbis. However, the Egyptian HRC export price is more or less in line with the export price from Turkey, which stands at $540-550/mt FOB officially for January-February shipments. In the meantime, Algeria’s HRC producer is in the market with offers at $565-570/mt FOB.
Import HRC offers to Egypt have increased by around $10/mt over the past two weeks, following the general market uptrend. For instance, a Russian sanctioned mill is offering at $475-480/mt CFR for February shipments. In the meantime, Chinese HRC is available at $500/mt CFR to Egypt, SteelOrbis has learned. Theoretically, import offers may be workable in Egypt, considering the minimum EGP 3,673/mt or $77/mt safeguard tax currently valid in the country. The domestic HRC price from Ezz Steel is at EGP 35,000/mt or $645/mt ex-works, based on the exchange rate of $1 = EGP 47.57.
Prices in EGP include 14 percent VAT, while offers in US dollars do not
