Egyptian mills are still taking their time to revise their domestic rebar prices, though upward adjustments have been expected for a while now amid higher logistics costs and increased scrap and billet prices. However, the leading Egyptian producer has maintained its previous indications, while other mills in Egypt, smaller ones, have raised their offers, but demand remains limited. As regards exports, rebar and wire rod prices from Egypt are being kept mainly above $600/mt FOB, in line with higher scrap prices and increased ex-Turkey export indications.
The official local rebar price from Ezz Steel remains at EGP 38,200/mt ($626/mt) ex-works, while the offer with a volume incentive and deferred payment is at EGP 37,200/mt ($610/mt) ex-works. Other producers in Egypt, citing higher production costs and also aiming to compensate for currency fluctuations, have increased their offers by EGP 500-2,000/mt (by $25/mt on the lower end of the range) to EGP 36,000-36,500/mt ($590-598/mt) ex-works. “Demand is still not good and the market does not seem quite balanced. Maybe there is pressure from the government to not increase the price for local rebar at around the same time the billet safeguard was settled,” a local market player told SteelOrbis.
As for exports, Egypt is now offering longs for May shipment at $600-610/mt FOB for rebar and $615-620/mt FOB for wire rod, up $5-15/mt from the end of March. Export demand has been moderate but EU-based buyers in particular are somewhat cautious in their purchases due to quotas.
Local billet prices in Egypt are at EGP 31,800-32,500/mt ($521-533/mt) ex-works, up by EGP 1,500-1,800/mt ($18-23/mt) over the past two weeks. “The billet price has increased on the back of higher scrap, but it’s not like they can sell while rebar prices are at previous levels,” a source said. Import billet indications in Egypt are at around $510/mt CFR from Russia and around $520-525/mt CFR minimum from China, which is already unworkable against local prices, not even taking into account the definitive safeguard duty. Local scrap prices in Egypt are at EGP 23,000-23,500/mt ($377-385/mt) CPT, SteelOrbis has learned.
Prices in EGP include 14 percent VAT.
$1 = EGP 53.5.
