Following last week’s price increase for steel rebar in the local Egyptian market, domestic billet offers have followed suit. While the import billet safeguard is still valid in Egypt, imports have been mainly quiet lately, but, with the local price rise, overseas suppliers have a greater chance to sell to Egypt.
According to sources, Ezz Steel in now offering billet at EGP 30,800/mt, while Suez Steel is offering at EGP 31,000/mt, which is around $570/mt ex-works on average according to $1 = EGP 47.5. In addition, local induction furnace-based producers are offering billet at EGP 29,500/mt ($545/mt) ex-works. Previously, the EAF-based billet price was at EGP 28,000-28,500/mt or $520-530/mt ex-works, based on last week’s exchange rate.
Higher local prices for billet might make imports more possible despite the safeguard restriction of 16.2 percent or a minimum of EGP 4,613/mt ($85/mt). As a result, the current billet import offers from Russia at $475/mt CFR could potentially be workable compared to local billet offers, considering also that the latest deals were closed for medium-size volumes at the same level. However, sales to the Turkish market seem more advantageous for Russian billet suppliers taking into account the freight difference, extras for manganese required by Egyptian buyers, and the safeguard which makes importers ask for significant discounts.
In the rebar market, the Ezz Steel price is at EGP 37,200/mt ($687/mt) ex-works, while the other suppliers in the market are mainly officially offering EGP 36,300-36,800/mt or $674-680/mt ex-works. Egypt’s export rebar and wire rod prices are at $545/mt and $550-555/mt FOB for February-March shipment, respectively, stable over the past week.
Local prices in EGP include 14 percent VAT.