Although the main Egyptian mill has kept its official local rebar prices stable, most other smaller producers have increased prices since last week due to rising costs, including fuel and scrap prices.
The official local rebar price from Ezz Steel with a volume incentive and deferred payment has remained at EGP 37,200/mt ($627/mt) ex-works. Market sources said that an increase in prices by Ezz Steel has been expected by the market and, even though it has failed to happen so far, the fundamentals in the market in Egypt point to an upward price trend.
There has already been an increase in fuel prices and a further rise may be implemented by the end of the month, while scrap prices are also following a rising trend. Some market sources said that the leading Egyptian mill is keeping prices stable as it tries to show the market that its price strategy is not connected with the recent announcement of definitive safeguard duties.
Other producers in Egypt, citing a continued increase in production costs, have increased their prices to EGP 39,200-39,350/mt ($660-664/mt) ex-works, which is up by as much as EGP 2,850-3,200/mt ($55-61/mt, at today’s exchange rate) since last week.
Local billet prices in Egypt have posted strong rises in line with rebar prices. In particular, one of the Egyptian mills has been offering billet at EGP 34,200/mt ($577/mt) ex-works, while some of the other producers can offer at levels EGP 200-300/mt lower. The current local billet price levels are EGP 1,700-2,200/mt ($33-42/mt) higher than seen last week.
Prices in EGP include 14 percent VAT.
$1 = EGP 52
