Foreign currency shortfall sparks 78% YoY increase in Egypt’s rebar steel prices in January
Updated 1/21/2024 12:02:00 PM
Arab Finance: The price of rebar steel ex-works (EXW) in Egypt jumped by 78% year on year (YoY) in January, hitting EGP 48,000 per tons, given the foreign currency shortfall and the significant drop in the factories’ production capacity, sources familiar with the matter told Asharq Business.
The majority of key factories in Egypt reduced their capacity by half, as they are facing challenges related to importing needed raw materials, a chairman of one of the rebar steel manufacturing firms noted.
If a steel manufacturing company decided to import $10 billion worth of raw materials, they shall deposit from $10 to $12 million at the banks to open a letter of credit, another chairman said.
Although the official data indicates to a decline in steel sales in 2023, the source attributed the increase in price to higher demand for iron by the private sector and individuals.
Related News
