Egypt’s Beshay Steel Increases Rebar Prices Twice in Past One Week: Sources

SteelMint has reported on 13 Mar’18 (Tuesday) that Egypt’s largest producer, Ezz Steel has increased its rebar prices by EGP 256/MT (USD 15/MT). While the other producers have kept their prices unchanged.

However, sources have informed us that Egypt’s another steel major Beshay Steel has increased its prices twice after 13 Mar’18 and currently its rebar are being offered at EGP 12,996/MT (USD 738/MT) ex-works, a surge of EGP 228/MT (USD 13/MT) in total. Prices include VAT of 14%.

Egyptian Steel has also raised its prices by EGP 700/MT (USD 40/MT) while another rebar producer El Gioshy hiked its prices by EGP 550/MT (USD 31/MT). Now, rebar prices of both the producers are being heard at EGP 12,850/MT (USD 730/MT) ex-works.

There has been no update about the change in rebar prices from other producers and the last offers of Suez Steel (Solb Misr) were heard at EGP 12,400/MT (USD 704/MT), EL Ola at EGP 12,300/MT (USD 699/MT), and El Marakby at 12,050/MT (USD 684/MT) ex-works basis.

However, as per market sources, these manufacturers are also likely to follow the suit and increase their rebar prices in the coming days.

All the domestic prices include VAT of 14%.

What is leading to a sudden and consequent rally in rebar prices in Egypt?

According to industry experts, the price rally in Egypt’s rebar prices can be attributed to hike in global scrap and billet prices.

Although the rebar and billet prices were increasing globally, the same was not being reflected in Egypt’s domestic rebar prices amid slack in its demand from the construction sector.

However, since past few weeks the rebar demand from construction sector has slightly picked up in Egypt as the first phase of the construction of Egypt’s New Administrative Capital (NAC) is targeted to be completed by the end of 2018.

The NAC is an ambitious plan of Egypt’s government which was launched by President Abdel Fatah al-Sisi in an official inauguration ceremony in October 2017 and is expected to cover an area of 167 km.

The new administrative capital will be divided into 20 districts that could house up to six million people. It is also planned to include educational institutions, hospitals, 40,000 hotel rooms, a theme park, solar plants and a new international airport.

Also, while the global prices of billet were increasing in past few months, the tepid domestic demand from construction sector in the country made rebar producers not to buy billets. However, as the demand has picked up now, the rebar manufacturers do not have sufficient billet stock, a key raw material for rebar manufacturing, creating a demand-supply mismatch and resulting in an increase in domestic rebar prices subsequently.

“The increase in raw materials prices internationally was not reflected in Egypt for a long time till this rally started. Also, when the market was having slowdown and prices of rebar were not increasing, the producers were not able to buy billets with the high prices that created a gap in billet supply in the country finally resulting in the current situation”, said a re-roller based in Egypt.

Egypt’s rebar prices as on 19 Mar’18            

Source: SteelMint
All prices include VAT of 14%