Egypt’s rebar market leader Ezz Steel has carried over its rebar pricing incentives in November into the month of December, considering that local buyers were supporting these price levels, contrary to the demand situation seen around three weeks previously. In the meantime, trading of import billets in the country remains quiet, while some sources report issues with discharging scrap cargoes at certain Egyptian ports.
Currently, Ezz Steel’s official rebar price stands at EGP 38,200/mt or $704/mt ex-works at a $1 = EGP 47.57 exchange rate, while the supplier has prolonged its EGP 4,000/mt discount into December. As a result, buyers can purchase the mill’s rebar at EGP 34,200/mt or $631/mt ex-works. Other producers are keeping their local rebar offers at EGP 33,500-34,100/mt or $618-629/mt ex-works.
Local billet offers from Ezz Steel are stable at EGP 28,000/mt ex-works or $516/mt ex-works according to the current exchange rate, which leaves no opportunities for imports at the moment, considering the safeguard of 16.2 percent or a minimum of EGP 4,613/mt ($97/mt). Billet import indications from Russia are still at $470-475/mt CFR, while China’s offers are estimated at $475-480/mt CFR. As a result, the general import price range is unworkable since, including the safeguard tax, it is at least $50/mt higher than local billet prices. In addition, according to market estimations, there are large billet stocks available at Egyptian ports. Some report up to 400,000 mt of billet stocked at ports and not yet custom-cleared.
Prices in US dollars exclude 14 percent VAT.