HRC producers based in North Africa have remained focused on domestic sales, being relatively protected from aggressive imports. Still, export activity is still observed but the mills prefer to deal from buyer to buyer, especially in view of the downward pressure created by the downturn in the import scrap market of Turkey and globally high freight rates.
In Algeria, the domestic HRC price has remained at DZD 115,000/mt ($719/mt) ex-works, following the increase last week. Moreover, taking into account the rather decent demand domestically, the producer is mulling another price hike for next month. The current retail price for HRC in Algeria has been reported at DZD 112,000-113,000/mt ($700-705/mt) ex-warehouse, based on the deals closed earlier by the producer. As regards exports, according to international sources, Algeria is offering at $640-650/mt FOB depending on the buyer, for December shipments, while the previous workable level was reported at $620-630/mt FOB.
The Egyptian flat steel producer has also been enjoying rather decent domestic demand with prices stable at EGP 42,000/mt ($690/mt) ex-works. As regards exports, the mill has been focusing on the European market with offers at $750/mt CFR, which beats just about every other alternative supplier in terms of workable prices. “Ezz Steel controls the quota in the EU, so it makes sense. I think Turkey would pay them $620/mt CFR maximum today,” a source told SteelOrbis. Some market players, however, have reported some indications from Egypt to MENA region-based buyers at $620-630/mt FOB.
In the import segment, the HRC market in North Africa has remained dominated by China and Russia. The base offers from China have been reported at $560-565/mt CFR, while the effective offers, including 1.5 mm coils, have been standing at $580/mt CFR Egypt. Russia has been offering $570-575/mt CFR for December shipment to North Africa, down $10/mt over the past week. In the meantime, some sources have reported their offers for X50 material at $620/mt CFR in Algeria. In addition, ex-Turkey HRC offers to North Africa, but mainly to Egypt, have been standing at $645/mt CFR, down by around $10-15/mt from the previous, high-priced offers.
Local prices include 19 percent VAT in Algeria, 14 percent in Egypt.
$1 = DZD 134.48
$1 = EGP 53.45
