Although the political tension in most of North Africa has calmed down, the impact of the political situation is still being felt in the flat steel markets.
In the Egyptian flat steel market domestic demand has not yet fully recovered. As SteelOrbis previously reported, early this month the Egyptian flat steel producer EZDK announced that it was keeping its domestic hot rolled coil (HRC) price unchanged at the level of EGP 4,000/mt ($675/mt) ex-works, exclusive of taxes. However, due to limited acceptance for EZDK's HRC export offers at $800-820/mt FOB, the producer has softened the offers in question. It is heard from market sources that EZDK has reduced its HRC export offers to $790/mt FOB for June production.
On the other hand, SteelOrbis has learned that in Tunisia, after the formation of the new government domestic flat steel demand has started to recover, albeit at a slow pace, while market players expect demand to liven up further through the end of March. Russian HRC offers to the Tunisian market stand at $800/mt CFR, while HRC offers from Spain are at €600/mt ($837/mt) CFR. In the meantime, it is reported that Maghreb Steel, the only flat steel producer in Morocco, has started to give HRC offers to the Tunisian market; however, these offers have remained above the price idea of Tunisian buyers.
Due to the ongoing political turmoil in Libya, Libyan Iron and Steel Co. (LISCO) has not resumed production yet and thus it has not issued any offers, while the world's largest steelmaker ArcelorMittal's Algeria-based flat steel producing subsidiary ArcelorMittal Annaba has not issued any offers either.
€1 = $1,395
$1 = EGP 5,929