Egyptian rebar raised prices in December

Earlier, the Egyptian iron and steel industry speculated that the government imposed the rebar import duty at the same time or increased the domestic rebar sales tax from 8% to 10%, but recent news that the government has decided to postpone the rebar sales tax increase, the market is expected to be postponed to It will be implemented in July next year.

In December, Egyptian rebar mills raised their quotations, mainly considering that the newly added 6.8% tariff may lead to a reduction in rebar imports, and an increased sales tax may increase steel mill costs by approximately 100 Egyptian pounds per ton. Traders believe that due to the unstable political situation and weak demand for rebar in Egypt, the Egyptian government may worry that end-users cannot accept the sharp rise in rebar prices, which will lead to further shrinking rebar consumption.

At present, the ex-factory price of December's rebar in Egypt's main steel company, Ezz, is EGP 4,210/tonne (US$689/tonne), which includes an 8% sales tax. The market expects that in January, the price of Egyptian rebar may face a correction as the rebar taxation policy is postponed.