Ahram reported that Egypt’s steel producers raised the monthly rebar prices in the domestic market by 4.2% in August.
Mr Mohamed Hanafi director of the Metallurgical Industries Chamber said that retail prices of locally produced steel rebars have jumped to EGP 5,280 per tonne in August from EGP 5,065 in July.
Mr Hanafi has attributed the price increase to the government’s decision to raise the cost of the natural gas, which is supplied to steel factories.
The decision became effective in July as a move to trim the state’s energy subsidy bill saw the price of natural gas for the iron, steel, aluminium, copper, ceramic and glass industries rise from EGP 28 million to EGP 49 million per million thermal unit.
Mr Hanafi said that the steel raw material billet saw price hikes of EGP 70 per tonne in the global market last month but that according to the MIC’s monthly report, the billet prices have remained unchanged since June selling at USD 530 per tonne.
Mr Ahmed El-Zeiny head of the building materials division at Cairo Chamber of Commerce said that producers have exaggerated the price hikes. Accordingly, this would prompt consumers to replace local products with imported rebars from Turkey and Ukraine which are sold at EGP 4,900 per tonne in the domestic market.”
He said that “The energy increase is estimated at EGP 20 per tonne, meaning that producing a tonne of steel rebars will cost EGP 100 instead of EGP 80 in terms of natural gas consumption. There 100,000 tonnes steel rebars at Damietta port to enter the domestic market soon.
Source – Ahram Online