Having been subjected to 25 percent duty for their billet imports as of April 15, Egyptian rolling mills were anticipating an increase in local liquid steel producers’ rebar quotations. A decline in or sideways movement of liquid steel producers’ prices would have put rolling mills in a tight spot since their profit margins were already low.
With liquid steel producers announcing the anticipated price rise on May 1, domestic rebar quotations in Egypt have increased from the EGP 11,200-11,650/mt ex-works levels recorded in April to EGP 11,250-11,780/mt ($655-686/mt) ex-works, both including 14 percent VAT. Although some rolling mills are still refraining from issuing domestic rebar offers, all market players are expected to follow suit and raise their prices.
On the other hand, SteelOrbis has been informed that Egyptian rolling mills are making official requests to reduce the 25 percent duty on billet imports.
$1 = EGP 17.17