In the second week of November, the price of Steel Rebar increased in Egypt’s spot market as the mills pushed the price amidst, tight supply and rising input costs. The upliftment in the Steel Rebar price by the major manufacturers across the Egyptian domestic market was backed by several factors including rising feedstock iron ore prices and upsetting steel scrap supply. Meanwhile, the increasing demand from the downstream construction and infrastructural sectors kept the local steel market bullish.

At the end of the third quarter of 2023, Al Ezz Steel Rebars Co., the major Steel Rebar manufacturer in Egypt, announced the Steel prices for November to remain unchanged and settle at USD 1116/MT. But as the month proceeded, the global macroeconomic factors incited the mills to increase their price to settle at USD 1165/MT in the second week of November. Feedstock Iron ore extended its gains, approaching USD 130 per ton CFR, amid expectations of some recovery in steel production. According to the local manufacturing plants, the Iron ore demand would not rebound strongly because Steel Rebar production cannot be increased as of now, as most plants have been showcasing underwhelming performance, and domestic downstream demands are weak. Moreover, iron ore inventory levels at the company’s warehouses and ports are rising.

Furthermore, the consumption of Steel Rebar from the downstream construction industries inches up as the Egyptian government has signed a USD 15.6 billion deal along with Chinese investors in the Suez Canal Economic Zone (SCZONE), for a total of 11 manufacturing and green Hydrogen projects. Egypt has inked several deals with foreign nations to uplift the motive of reducing carbon emissions and promote the use of renewable and alternate energy sources. This has backed the bullish market sentiment for Egypt’s Steel Rebar market in recent weeks. Furthermore, the demand from the downstream construction sector remains high as the construction material market experienced an inkling price trend. The price of cement and other construction materials supported the rising price of Steel Rebar in the downstream construction and infrastructural development industries.

According to ChemAnalyst, the price of Steel Rebar would remain on a higher edge in the Egyptian spot market as the government’s latest deals and policies supporting the growth in the hydrogen sector will increase the demand for domestic Steel Rebar demand. According to the major market players, the raw materials market is anticipated to face a shortage in the last quarter. Additionally, the rising price trend of metallurgical coke and fuel price will lead to a hike in the production cost of Steel Rebars in domestic manufacturing plants.