Posted on 21 Mar 2023
Major Egyptian mills have hiked their domestic market 12-32mm diameter rebar quotes by nearly EGP 2,275-3,000/tonne ($93) on previous quotes, effective 20 March. Egyptian majors last increased their rebar prices on 7 March, Kallanish notes.
Market maker Ezz Steel is setting its new, 14% VAT included, ex-works domestic rebar price at EGP 32,135/tonne ($922) versus the previous EGP 29,285/t, up 9.7%.
Mills’ new domestic market ex-works net rebar prices, including 14% VAT, are at EGP 32,050/t ($917) for Suez and Egyptian Steel (El Masryeen) versus last week's EGP 29,200/t. Dollar conversions exclude the 14% VAT levied in Egypt. Payment is cash or seven days after delivery.
The exchange rate in the black market has reached EGP 35.8 per dollar, while banks transact at nearly EGP 30.85 per dollar.
"Due to the foreign currency crunch, Egypt has been struggling economically, and mills are experiencing difficulty importing raw materials. Mills can hardly issue LCs because the government prioritises essential goods and pharmaceuticals imports," comments a sector participant. "Due to current price levels, domestic consumption will decrease for sure, but mills cannot replace these sales in the export markets."
Other Egyptian mills are considering to follow suit but their new prices could not be obtained before press time.
Source:Kallanish
