The local HRC price of Egyptian steelmaker Ezz Steel has remained at EGP 39,000/mt or $660/mt ex-works for July deliveries. Demand is reported to be at moderate levels and the stocks in the market are below medium levels as traders have been citing certain supply issues with the local producer. As for exports, Ezz Steel is still refraining from giving firm offers, remaining out of the market for several weeks now. However, foreign buyers expect them to announce fresh prices shortly. In particular, a level of around $640/mt CFR is expected to be seen in Turkey, which is around $615-620/mt FOB. The supplier is expected to be in the market with offers for August shipment.
In the import HRC segment in Egypt, there are several offers despite the safeguard restriction. “It is certainly harder to import due to the tax but due to some delays in deliveries in the local Egyptian market there is a certain interest in imports, especially for re-rolling material,” a trader told SteelOrbis.
Currently, the lowest HRC import prices are coming from China, at $585-590/mt CFR, down $5-10/mt from before the holiday. In addition, some buyers have reported indications from Russia at $590/mt CFR, most probably for non-sanctioned material. The sanctioned Russian mills are currently focusing on sales to Iran and will be aiming at no less than $560-570/mt CFR North Africa. However, they are able to sell to Iran at $560-570/mt FOB Caspian Sea. In addition, Turkey is also in the market with $660-665/mt CFR Egypt for August shipment, with no deals reported yet.
Prices in EGP include 14 percent VAT.
$1 = EGP 51.85.
