Egyptian steel producers have increased their domestic prices for both long products and hot rolled coil (HRC) due to factors like currency fluctuations and costlier raw materials and billets, but also due to the positive demand for flats in the country and the moderate demand for longs. In addition, export activity has been somewhat better for both longs and flats recently.
Ezz Steel, the largest steel producer in Egypt, has lately increased its domestic longs price by EGP 2,500/mt to EGP 38,500/mt ex-works. On US dollar basis and according to the unofficial exchange rate of $1 = EPG 51, the mill’s offers for rebar and wire rod have settled at $662/mt ex-works. The government exchange rate in the country stands at $1 = EGP 30.8. It is worth mentioning that it is not the usual official announcement of Ezz Steel, but is “a sort of message they send to customers”. Other rebar suppliers in Egypt are also targeting higher prices. One of the large ones is offering at EGP 38,000/mt ($653/mt) ex-works, while another one is offering on the high side at EGP 40,500/mt ($654/mt) ex-works, both according to the unofficial rate. Another producer is aiming at EGP 40,800/mt or around $700/mt ex-works, SteelOrbis has learned.
As regards exports, Egypt’s rebar and wire rod prices for February shipments are at $600-620/mt FOB, with some demand seen from the MENA region and the EU.
In the flats segment, Ezz Steel’s local HRC price has also been increased by EGP 2,500/mt to EGP 39,500/mt ex-works or $680/mt ex-works. As for exports, the most recent sales to the EU have been reported at up to $700/mt CFR for February shipments, up from the previous deals at $680-690/mt CFR closed to Spain and Italy around two weeks back. The freight from Egypt to the southern part of the EU is estimated at around $30-35/mt depending on the tonnage.