Global iron ore and scrap prices have declined, affecting industries worldwide. To cope, factories are exporting abroad to secure currency for importing essential materials. Egypt's steel and arming exports reached $1.1 billion in H1 2023. The price of iron per tonne in factories ranges from 31,000 to 32,500 Egyptian pounds before additional expenses and trader margins.
Iron prices in Egypt have recently surged by 5.7%, reaching an average of 37,000 pounds per consumer, up from around 35,000 in early August. This increase is attributed to a decrease in the supply of iron, primarily driven by traders. Iron prices had remained stable in factories since June, but Al-Jarhi Iron Factory raised its prices by 500 pounds per ton recently, totaling about 32,000 pounds per ton. Although major factories like Hadid Ez, Suez, and Egyptians are fulfilling their delivery contracts with traders, some have reduced their market quantities due to challenges in customs releases for imported iron ores.
On the other hand,the price for a tonne of Iron EZ, the largest and most productive type in Egypt and Africa, currently stands at 32,135 pounds. Similarly, Suez and Egyptian steel manufacturers are offering iron at 32,050 pounds per tonne, while steel boats and Iron Al-Jarhi are both priced at approximately 32,000 pounds per tonne.
However, this stability in prices comes against a backdrop of economic concerns. Markets and factories are closely monitoring the exchange rate of the dollar against the Egyptian pound. This vigilance follows reports of potential downgrades in Egypt's credit rating by some global entities and the postponement of the initial review of economic measures by the International Monetary Fund for another three months.