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Steel rebars set to pick up by EGP350 on recent round of energy spikes: traders

Thursday 28 June 2018 04:56 PM

steel rebars
steel rebars

By El-Morsy Ezzat & Omar Salem
Ex-factory steel rebars prices are set to pick up as of early July by EGP300 and EGP350 per tonne.
 The expected surge in prices may be  assigned to higher energy costs, heavy purchases and storage of steel in anticipation of further hikes in prices, according to traders.
The demand side is currently on the rise, owing  to traders upping steel purchases.
" The increase is coming inevitably down the road in view of a recent round of hikes in electricity prices," an informed source at a steel producer told Al-Mal newspaper, adding that costs of smelting have risen by EGP250 per tonne and higher prices of water have also added an extra  EGP50  per tonne.
" Producers are expected to increase prices next July by EGP200 and EGP350 per tonne, as sales are booming right now," said sales manager at Ashry Steel Mohmed El-Sewedy.
 Managing director at El- Massia for Steel Bars Trading Khalid El-Degawy concurred, confirming that steel companies may resort to pick up prices in the next few days in order to offset hikes in inputs, predicting the local market to see ex-factory increases ranging from EGP300 and EGP200 per tonne and end-user prices at EGP13.2k per tonne.
Egypt imported 10k tonne steel rebars from the Saudi Arabia, whetting consumers appetite to double down purchases.
Ex-factory prices of steel rebars stand currently at EGP13000 and end-user prices at EGP13100 and EGP13200.