November 22, 2008

Al Ezz Steel increases rebar prices for July

Daily Star Egypt reported that Egypt’s giant steel producer Al Ezz Steel Rebars has increased its July 2008 market prices by EGP 570 per tonne. It revealed its new pricing scheme for the entire month. Consumer prices mounted from the previous EGP 5,990 per tonne to the current EGP 6,560 per tonne.

This is Al Ezz’s fifth price increase since beginning of the year. It has been steadily raising prices since October 2007. Al Ezz Steel Rebars has been increasing prices since 2008 in order to absorb a 70% increase in global prices of iron ore, which it estimates will soar an additional 20% in 2008.

Al Ezz Steel Rebars is able to further hike prices each month without adversely affecting its sales because steel market in emerging economies remains very tight in favor of steelmakers.

Meanwhile, Al Ezz Steel officials have repeatedly justified domestic upsurges in their prices to leaps in international markets and rises in prices of raw material, which directly affected production costs.

Al Ezz Steel Rebars is one of the largest steel producers in the region. It also sells to international markets including the US, Canada, China and a number of European countries.

(Sourced from www.steelprices-middleast.com)