Egypt steel producers increase prices by 5% on newly-adopted VAT

Egyptian steel producers have raised steel prices for the local market by 5 percent just after the government had announced the implementation of the value-added-tax (VAT) earlier this month.

The rise came just a few days before announcing the new prices for October, which are likely to rise again amid expectations of a potential increase in the global prices of billet.

The increase in steel prices came as the tax on raw materials has increased from 5 percent to 13 percent and the VAT on rebar also rose from 8 percent to 13 percent.

Egypt’s parliament gave a final approval on August 31 to the implementation of the long-delayed VAT at a rate of 13 percent for the current financial year.

Ezz Steel, which controls more than half the country’s steel market, has rose its prices by 4.6 percent since the beginning of this September to 6278 Egyptian pounds ($707) per tonne, from 6000 pounds.

For Beshay Steel Company, prices hiked 3.7 percent to 6225 pounds per tonne, from 5950 pounds.

El Marakby Steel’s prices grew 4.5 percent to 5940 pounds per tonne, from 5680 pounds.

Solb Misr also raised prices by 5.1 percent to 6100 pounds per tonne, from 5800 pounds. In addition, prices in Egyptian Steel Group, owned by business tycoon Ahmed Abu Hashima, also climbed 4.3 percent to 6000 pounds per tonne, from 5750 pounds.