Egyptian longs producers have made an attempt to increase their export offers slightly, citing moderate demand, solid scrap prices and higher domestic price levels. In addition, some higher levels have been voiced for the European markets, where Egypt sees potential for sales with better margins within the scope of its quota for the fourth quarter.
As regards exports, Egypt has been trying to increase prices for rebar and wire rod by around $10/mt depending on the mill. In fact, according to sources, some suppliers are back to offering $580/mt FOB for rebar, specifically for the EU market, while some buyers believe $5/mt discounts should still be possible. Wire rod export prices are at $590-600/mt FOB currently, while some producers are offering at up to $610/mt FOB to regular customers and at $620-630/mt FOB to the markets like Saudi Arabia.
In the domestic market, while Ezz Steel is officially offering rebar at EGP 39,850/mt ($702/mt) ex-works with an incentive allowing to book at EGP 39,000/mt ($687/mt) ex-works, other producers are offering at around EGP 37,500-37,000/mt ($652-661/mt) ex-works, SteelOrbis has learned. In the wire rod segment, according to sources, current local prices in Egypt are at EGP 35,000-36,000/mt ($617-634/mt) ex-works, relatively stable over the past week, the same as the situation in the rebar segment.
Billet import activity in Egypt has been rather quiet lately with offers from China reported mainly at $510-515/mt CFR, with no interest seen due to the ongoing safeguard. The domestic prices for billet from Ezz Steel, according to market players, are at EGP 30,100/mt ($530/mt) for base grade and at EGP 34,000/mt ($600/mt) for DWR grade, both on ex-works basis. Induction furnace billet is on offer currently at EGP 29,500-29,800/mt ($520-525/mt) ex-works. “There is no room for the import material: China and all Asia are too high pricewise and due to the freight rates. Russian material is not available due to threatened logistics and the port situation in the Black Sea and Azov Sea,” an Egyptian buyer told SteelOrbis. Domestic scrap prices in Egypt are at around EGP 20,000/mt ($337/mt) CPT for light grades and EGP 24,500/mt ($413/mt) CPT for heavy and bonus grades.
Local prices in EGP include 14 percent VAT.
$1 = EGP 49.8
