Egyptian mills have once again adjusted their domestic prices for rebar this week, significantly increasing them compared to last week. The main reason for the increase is still the tough currency situation in the country and its constant devaluation. The US dollar equivalent of the price increase is quite large, as there has been no significant upturn in demand, although overall trade is said to be quite lively. “Business is continuing despite the financial issues but local prices are certainly much higher than export prices. Mills need cash but in this case they have to play according to the global competition,” a large trader told SteelOrbis.
Local producer Ezz Steel, who is the leader in the Egyptian market, has increased its domestic rebar offers by EGP 2,000/mt to EGP 23,450/mt ex-works. In fact, the US dollar equivalent rose by $66/mt to $832/mt ex-works. Other key suppliers, including Suez Steel and El Marakby Steel, have made the same move, raising offers to EGP 23,350/mt ($829/mt) and EGP 23,330/mt ($828/mt) respectively, both on ex-works basis.
Rebar export offers from Egypt are rare nowadays and are mainly at $630-645/mt FOB for end-of-January and February shipments. In the wire rod segment, some mills are offering at $640/mt FOB, while some are targeting $645-655/mt FOB, SteelOrbis has learned.
As for local demand, consumption levels in November amounted to 791,700 mt for steel rebar, up 39.07 percent month on month, but remained almost at the same levels compared to November 2021.
The domestic prices in EGP include 14 percent VAT, while the US dollar levels do not.
$1 = EGP 24.72