Iron companies operating in the local Egyptian market have declared they will not raise prices in December despite rising costs for raw materials. Sales plunged by 30% over the past 2 months. The companies wish to reduce their stocks of products during the current market recession which is caused by security and political instability.

Mr Samir Noamani head of the rebar division at the Federation of Egyptian Chambers of Commerce said that in December the price of iron will remain EGP 4500 per tonne in Cairo and reach nearly EGP 4650 in Upper Egypt. The price fixing comes in response to the rising value of the US dollar vis à vis the Egyptian pound. A stronger dollar increases market rates for crude material.

Mr Noamani explained that operations were halted at several government projects as the result of the government's failure to pay companies their dues. He noted that renovations at the Alexandria desert road have been brought to a halt over payments delayed since May 2010.

Mr Ahmed alZeiny head of the building materials division at the Cairo Chamber of Commerce, confirmed that iron companies fixed their prices in December. Ezz Steel has fixed its prices at its November rate of EGP 4500 per ton. Beshay Steel charges EGP 4495 and Attal National Steel charges EGP 4470.

(Sourced from www.almasryalyoum.com)