Al-Garhi Steel Company announced the increase of steel prices starting tomorrow, November 18, by about EGP 400 per ton.
Khaled Al-Dajwi, chairman of Al Masia Steel, said that Al-Garhi Steel Factory had sent a note to its agents stating that the prices of iron had been raised to EGP 10,000 per ton, instead of EGP 9,600.
He added that the ton is expected to exceed about EGP 10,300 including freight and Value Added Tax (VAT).
Al-Dajwi pointed out that the market is witnessing a significant stagnation in sales during the current period, and the proportion of sales does not exceed 25% as a result of the recession and the increase in inventories pointing out that most of the iron mills have decreased their prices during the last period.
The past period has witnessed significant declines in the prices of rebar, reaching a decline of EGP 1,000 per ton. The rebar industry is a strategic one in the Egyptian market and one of the most important players in the production of steel in the Middle East, while Billets and scrap are the main inputs for the manufacture of reinforcing steel for construction.
However, the prices of billet and scrap rose significantly, increasing from $7 for billet and $14 for scrap to the price of $395 and $258 respectively.
Some steel mills have started to raise their prices. Ezz Steel announced a net increase in the price of EGP 200 per ton at EGP 10,370 pounds for bars and EGP 9,970 for rolls.
The production capacity used by the factories ranges between 20 and 30% as a result of the recession and the increase in inventories.
The latest Central Bank reports revealed that Egypt's average iron production reached 5.994 million tons during the first nine months of this fiscal year 2018-19.
The report pointed out that the sales volume of the most important steel companies during the period July - March ' of the FY 2018-19 amounted to 5.125 million tons with an average sale of about EGP 62.255 billion.
A number of major companies operate in the Egyptian market, including Ezz, Egyptian Steel, Suez, El Marakby, and others.
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