In North African region, Egypt is still an active exporter of longs products, having kept its offers stable, while Algerian mills are barely present in the overseas markets, being focused on their domestic sales and production issues. In the local markets of both countries, rebar and wire rod prices have stabilized at high levels, though demand has been showing some signs of weakening lately.
Export prices for rebar and wire rod from Egypt are stable this week, mainly amid moderate demand and firm scrap prices. The official offers for June shipments are at $610-620/mt FOB for rebar and $620-630/mt FOB for wire rod and wire rod in coil. Inquiries from Saudi Arabia keep coming, specifically for wire rod, with prices stable at $700/mt CFR LO (around $665/mt FOB). Still, sources report that a certain slowdown has been seen in demand from this destination, following the earlier rise in sales. “It is softening due to the Haj season and expectations of the arrival of some Chinese vessels,” a source told SteelOrbis.
In the domestic market in Egypt, the official price from Ezz Steel remains at EGP 39,850/mt ($661/mt) ex-works, while most other mills are at EGP 38,000-39,300/mt ($630-652/mt) ex-works. VAT is 14 percent, with the exchange rate at $1 = EGP 52.89. Some sources have reported that the ongoing situation at Egyptian Steel is affecting daily market activity, but others stated that the general “slowdown in the economy, priorities for fuel, food and necessities, the slowdown in the [steel] demand and the availability of cash” are having a strong influence on the overall longs market picture in Egypt. In the meantime, domestic prices for bonus grade scrap have remained at EGP 24,000/mt ($398/mt) CPT, while billet is at EGP 33,500-34,500/mt ($556-572/mt) ex-works.
Local rebar and wire rod prices in Algeria are at DZD 117,000/mt and DZD 118,000/mt, respectively, which translates to $743/mt and $749/mt, all on ex-works basis. Prices in the domestic currency include 19 percent VAT, with the exchange rate at $1 = DZD 132.36. Demand is said to be moderate, but some of the sources report that stocks have been slowly piling up in Algeria. Currently, hardly any export offer is heard from Algeria for longs, while one mill is concentrating on covering domestic demand while its occasional offers to non-EU countries have been reported at $590-605/mt FOB for rebar and at $610-615/mt FOB for wire rod. Another Algerian mill is practically out of the market due to its ongoing rolling mill revamp.
