The local finished steel prices have decreased in Egypt, following a rather long period of stability. Most market players agree that Ezz Steel, the largest steel producer and the market leader in Egypt, has taken a decision to drop prices in the local currency, taking into an account the falling unofficial exchange rates.
Ezz Steel has decreased its domestic prices for long products by EGP 5,800/mt to EGP 40,700/mt ex-works which is around $756/mt ex-works according to the $1 = EGP 47.2 exchange rate. Still, despite the decrease, the local Egyptian prices are much higher than in other nearby countries, and are considerably above Egypt’s own export prices. According to sources, the latest export offers for longs from Egypt vary at $575-585/mt FOB depending on the supplier.
In the flats segment, Ezz Steel has adjusted local HRC prices down by EGP 8,620/mt to EGP 41,700/mt ex-works, which is around $775/mt ex-works. In the meantime, the latest ex-Egypt offers for HRC to the Turkish market stood at around $630-640/mt CFR with the freight rate estimated at around $20/mt for a decent tonnage.
