The domestic longs business activity in Egypt has not shown much of improvement over the past two weeks with the deals being closed mainly to stockists, while the end-user segment remains rather slow due to a certain lack of governmental support. Most mills have been trying to maintain the official offers, but some have chosen to provide significant discounts.
The local rebar offer from Ezz Steel remains at a discounted level of EGP 34,200/mt or $630/mt ex-works according to $1 = EGP 47.6. Most other producers are at EGP 32,500-33,500/mt ex-works or around $600-617/mt ex-works. However, according to sources, one of the key suppliers has set its price at as low as EGP 31,500/mt ($580/mt) ex-works. “It seems that in the latest round mainly the traders booked rebar, which means that the stock levels are quite high in the market,” a local player told SteelOrbis. As a result, the mills’ sales dynamics in January might be under pressure in Egypt.
Export activity for longs from Egypt has been rather slow considering the holiday period in the European countries and overall weak market fundamentals. The latest offers for rebar stood at $550/mt FOB, for wire rod – at $555-560/mt FOB, both for February shipments. Buyers believe $5/mt discounts are still possible, but generally it is considered there is not much pressure on the suppliers since the scrap prices are still high internationally and Turkey’s prices are still less competitive. Plus – there is no inquiry,” an Egyptian producer told SteelOrbis.
In the billet segment, the local billet prices are still at EGP 28,000/mt or around $515/mt ex-works, while the available volumes, according to buyers, are limited. The indicative import offers are at $475-480/mt CFR for both Russian and Chinese materials, the interest in minimal due to the valid safeguard tax. The potential buyers believe that the price of the import semis should be at $420-430/mt CFR maximum.
Local prices in EGP exclude 14 percent VAT.