Egypt Rebar Prices on a Roll; Ezz Steel Increases its Prices Further this Week

Last week Egypt’s largest rebar producer, Ezz Steel announced a hike of EGP 256/MT (USD 15/MT) in its rebar prices. However, the news has come that the company has increased its prices further by EGP 564/MT (USD 32/MT) and company is currently offering rebar at EGP 12,790/MT (USD 727/MT) ex-works, including VAT of 14%.

While other manufacturers were increasing prices since the last week of Feb’18, Ezz Steel had kept its prices unchanged. However, over past two weeks, the company has increased its prices by EGP 820/MT (USD 47/MT) in total.

“Ezz Steel consecutive price hike is logical as the company’s rebar prices were quite low as compared to prices of other rebar producers in the country”, said a local re-roller based in Egypt.

According to market sources, other manufacturers have kept their prices unchanged till today. Steel major Beshay Steel had increased its rebar prices twice in last week and currently, its rebar prices are being assessed at EGP 12,768/MT (USD 725/MT) ex-works.

Suez Steel’s (Solb Misr) rebar is currently being offered at EGP 12,400/MT (USD 704/MT) ex-works. Steel mills, EL Gioshy and El Ola are offering their rebar at EGP 12,300/MT (USD 699/MT) ex-works.

Egyptian Steel and EL Marakby are offering their reabr at EGP 12,150/MT (EGP 690/MT) and EGP 12,050/MT (USD 684/MT) ex-works respectively.

All these domestic rebar prices include VAT (Value added tax) of 14%.

Reasons responsible for an increase in Egypt’s rebar prices

One of the major factors responsible for the increase in Egypt’s rebar prices is the surge in global scrap and billet prices due to improvement in demand for finished steel products across various countries including Turkey and India.

While Egypt’s rebar prices had not shown any sign of increase over past few weeks due to tepid domestic demand, country’s steel demand from construction sector started showing signs of improvement off late pushing its domestic prices.

Egypt’s rebar production in 2017 stood at around 7.17 MnT. Out of the country’s total rebar production, the percentage share of Ezz Steel is the highest with around 40 – 45%, while Beshay Steel, El Garhy, Egyptian Steel, and Suez Steel has a contribution of around 10-15% each. El Marakby has percentage contribution of around 3-4%.

Egypt’s rebar prices as on 13 Mar’18:

Source: SteelMint
All prices include VAT of 14%