Egypt-based rebar producers want dumping fees to be slapped on Saudi imports

Tuesday 10 July 2018 05:41 PM

rebar steel
rebar steel

By Morsy Ezzet
Egypt-based producers of steel rebar urged Ministry of Trade and Industry to impose dumping fees on Saudi rebar imports.
" With energy prices far lower than Egyptian ones, the Saudi rebar  threaten Egypt-based factories," sources told Al-Mal newspaper.
Saudi companies buy gas, a key input, at USD1.25 per million Btu against USD7 for the Egyptian peers, the source continued.
The four Egyptian importers of Al-Ola, Al-Ghunemi, Al-Shorouk and Akhwan Salah clinched deals to get 20,000 tonne from the two Saudi rebar factories of Al-Rajhi and SABIC.
During the past two months, the three Egyptian importers of Al-Otefy, Fagr Steel and Al-Ahmedy received 5,000 tonne, 2500 tonne and 2500 tonne respectively from the Saudi Al-Rajhi.
The Egyptian markets started  last month trading Al-Rajhi steel rebar  at the end-user price of EGP12500 per tonne.
Egypt-based rebar factories have ex-factory prices ranging  between EGP12250 and EGP12600 per tonne, whereas end-user prices fluctuate in Lower Egypt and Upper Egypt between EGP12350 and EGP12700 per tonne respectively. Additionally, lowest and highest prices in Upper Egypt reach EGP12500 and EGP12800 respectively.
Al-Rajhi's ex-factory prices amount to USD595 per tonne ( equivalent to EGP10550) to which EGP150 freight and unloading fees are added.
Egypt decided back in December to tighten noose on rebar imported from Turkey, China, and Ukrain on which diverse dumping fees were slapped, but are due to be expired in 2022.
Production capacity of Egypt-based rebar factories  amount to 11.8mln per tonne a year against 8.6mln consumption, reflecting a 3.2mln surplus, according to statistics released by Metallurgical Industries Chamber.  
Egyptian traders are scrambling to buy rebar in response to latest price hikes, driving tractors to overcrowd in front of factories.