The Egyptian longs market is currently operating in conditions of insufficient local demand, somewhat slow export activity and rather active imports, especially as regards wire rods for which there is less market protection. In the meantime, the US dollar equivalent of local rebar prices in Egypt has increased significantly due to pound-dollar exchange rate fluctuations, thus opening additional possibilities for billet imports in the country despite safeguard duty.
Currently, the local official rebar and wire rod prices from Ezz Steel are at EGP 38,200/mt ex-works or $708/mt ex-works according to the current exchange rate. Sources believe the workable prices in general in the market may fall as low as EGP 37,500/mt or $695/mt ex-works. “[Egypt’s] local rebar is the highest-priced in the region, including all the MENA region and Europe. The market is protected but the spread between local and potential import prices, especially from China, is becoming too wide,” a source explained. According to sources, some smaller rebar producers in Egypt are offering at around EGP 36,000-37,200/mt or close to $670-690/mt ex-works.
The latest import offers for wire rod from China have been reported at $560-570/mt CFR in Egypt, while high carbon material from Russia, according to sources, has been on offer at $540-545/mt CFR for November shipment. Turkey’s rebar and wire rod are available at $565/mt and $570-585/mt CFR Egypt, respectively, with no deals reported due to the high price levels. Currently, rebar in Egypt is subject to 17-29 percent antidumping tax depending on the country (Turkey, China or Ukraine).
Export longs offers from Egypt for December and January shipments are standing at $540-545/mt FOB for rebar and $545-550/mt FOB for wire rod. Sources have reported that small lots have been sold to Lebanon at $530-535/mt FOB for rebar, while the latest and lowest offers for wire rod to the EU stood at $545/mt FOB.
High local prices for longs in Egypt are expected to provide additional opportunities for billet imports into the country despite the safeguard measure adopted back in September. Currently, all billet imports to Egypt are subject to 16.2 percent tax or a minimum EGP 4,613/mt ($98/mt according to $1 = EGP 47.3). The latest import billet offers from Russia and Donbass have been reported at $475-477/mt CFR, while the latest workable levels for ready cargoes have stood at $470-475/mt CFR for 10,000-15,000 mt lots. With the minimum tax, the current import prices would be at $573-575/mt CFR. According to local steel market players, the domestic 5SP billet price from Ezz Steel stands today at EGP 31,000/mt or $575/mt ex-works, while 3SP material is offered at EGP 30,000/mt or $556/mt ex-works according to the current rate. And, although the import levels with the duties are more or less in line with the domestic billet offers in Egypt, the official local rebar price is at least $95/mt higher than that.
Prices in pounds include 14 percent VAT.
$1 = EGP 47.3