Egyptian producer Ezz Steel has further decreased its domestic longs prices with the more sizeable decline seen on the rebar side. The producer’s steel rebar is currently available at $590/mt (EGP 10,900/mt) ex-works, down $19/mt (EGP 390/mt) since the end of September. At the same time, its wire rod offers have decreased by $8/mt (EGP 190/mt) over the same period to $579/mt (EGP 10,700/mt) ex-works.
The limited domestic demand for longs is voiced among the key reasons for the downturn. However, the recent government decision to reduce natural gas tariffs for the steel industry in Egypt may have influenced the price policy of Ezz Steel. “Maybe they use what they got as a cost reduction … as well to reduce price to help selling high stocks,” a local player told SteelOrbis.
Since Ezz Steel’s announcement, local re-roller El Garhy has announced its rebar offers at $569/mt (EGP 10,500/mt) ex-works. However, not everyone has reacted to the move by Ezz Steel. In particular, El Marakby Steel’s rebar price is still standing at $574/mt (EGP 10,600/mt) ex-works.
$1 = EGP 16.2