Egyptian Iron Retreats Amid Global Price Decline

The global metals prices have mostly declined during the last week of May amid the current state of price fluctuation, according to the weekly report issued by the Metallurgical Industries Chamber of Federation of Egyptian Industries.

The report says the price of the rebar fell to reach $660 per ton on 29/05/2012, down $5, as it amounted to $665 per ton on 22/05/2012. Additionally, the price of the raw billet went down reaching $610 per ton on 29/05/2012, compared to $630 per ton on 22/05/2012. The prices of the shredded scrap dropped to reach $410 per ton on 29/05/2012, compared to $425 per ton on 22/05/2012. While the prices of cast iron reached $495 per ton.

Eng. Mohamed Said Hanfy, the Chairman of Metallurgical Industries Chamber, has forecast that the prices of metals will witness a further drop within the coming days sandwiched by higher input costs and a slowdown in Chinese consumption that crimped demand.

Ezz Steel (ESRS.CA) has announced in June reducing its price for rebar steel in the local market by EGP150 per ton; the ex-factory selling price has reached EGP 4450 per ton instead of EGP 4600 per ton. Additionally, the selling price amounts to EGP 4750 per ton.

“The cut in prices was due to the decline in the global iron ore prices which worth $30 per ton reaching $650 per ton, compared to $680. This has led in return to a further decline in the local prices.” Samir Noman, Ezz Steel Corporate Sales Officer, added

Elsewhere, most of the steel mills have announced price reduction.

The Egyptian American Steel Rolling Mill (Beshay Steel) have announced cutting down its prices for iron by EGP 4430, while Garhy Steel reduced its ex-factory selling prices by EGP 4410.