Egypt’s domestic rebar prices have posted a significant decline, following several months of stabilization at a rather high level. Sources believe the main reason is the aim of the largest local producer to stimulate domestic sales. In the meantime, export offers from Egypt for rebar and wire rod have increased over the past week.
Ezz Steel, Egypt’s largest steel producer, has announced a new rebar price at EGP 38,300/mt ex-works, while the previous level stood since early April at EGP 40,700/mt ex-works. Taking into account 14 percent VAT and an exchange rate of $1 = EGP 48.4, the latest Ezz Steel rebar price has been settled at around $690/mt ex-works, versus close to $740/mt ex-works earlier.
The other rebar producers in Egypt have traditionally followed the same price policy and have settled their domestic offers in the range of EGP 37,500-38,100/mt ex-works or around $680-690/mt ex-works.
In the meantime, Egypt longs export offers have increased over the same period. While last week rebar and wire rod were mainly available at $570-580/mt FOB, the latest indications have been reported at $580-590/mt and $590-610/mt FOB for rebar and wire rod, respectively.
