Wave of Steel Price Reduction Hit Industry

By: Taarek Refaat

CAIRO, Dec. 21 (SEE)- Ahmed El-Zeiny, the head of the Building Materials Division at the Cairo Chamber of Commerce said on Friday that a wave of steel price reduction hit the industry.

Al-Jarhi announced yesterday EGP 350 cut in steel prices to reach 11.550 thousand per ton.

It is worth mentioning that, Al-Jarhi cut for the second day in a row at EGP 11.475 thousand per ton.

"The new prices will come retroactively from December 16 to January 31, meaning that traders who purchased steel during the last ten days will be charged with new prices," El-Zeiny added.

He said that the prices of Ezz Steel also dropped to the level of EGP 11.600 thousand per ton, including Value Added Tax (VAT).

"10-12 mm Ezz steel recorded EGP 11.850 thousand down from EGP 12.198 thousand earlier this year," he stated.

Suez Steel's prices also dropped to record EGP 11,500 per tonne.

Following major factories, El Zeiny is expecting a wave of decline in prices.

"The cut in prices came amid an attempt to boost the steel market, which suffers from a severe recession and a falling demand," he added.

The steel industry serves as one of the anchors of Egypt's economic growth and development.