Egypt's rebar market has experienced a notable decline in prices this December, according to the latest price list from SteelRadar. As of December 16, 2024, rebar prices have decreased across the board, marking the lowest levels seen in recent months.
The data indicates that all listed companies have experienced a decrease in their rebar prices from November 30 to December 16. The most substantial price drop is observed in Mitad Helwan, with a decrease of USD 26/MT, while the smallest decline is seen in Al Garhy, with a reduction of USD 8/MT.
The leading manufacturer, Ezz Steel, saw its prices drop from USD 769/MT to USD 750/MT, a decrease of USD 18/MT. Suez Steel and Egyptian Steel both companies reported identical price reductions, with their prices falling from USD 767/MT to USD 749/MT, a decrease of USD 18/MT.
Despite maintaining its EGP/MT price at 40700, Beshay experienced a significant drop in its USD/MT price from USD 819 to USD 750, a decrease of USD 69/MT. Arco Steel faced one of the largest declines, with prices dropping from USD 732/MT to USD 707/MT, a decrease of USD 25/MT. The most significant price reduction was observed in Mitad Helwan, with prices falling from USD 704/MT to USD 678/MT, a decrease of USD 26/MT
The overall decline in rebar prices can be attributed to several factors, including fluctuations in raw material costs, changes in demand within the construction sector, and broader economic conditions. The reduction in prices is likely to benefit construction companies by lowering their material costs, potentially leading to more competitive project bids and increased construction activity.
The Egyptian market, heavily influenced by global economic trends and local production capabilities, reflects a period of adjustment as it navigates through fluctuating demand and supply pressures. The steel industry, particularly in Egypt, is sensitive to these changes, and the price reductions may signal a period of stabilization and realignment with global market conditions.
The recent trend also highlights the impact of external factors such as the cost of raw materials and international market dynamics. The involvement of major players like the EU and UK in supplying scrap has contributed to the oversupply, putting downward pressure on prices. Furthermore, the resistance from Turkish mills to price increases, despite rising freight costs and expectations of Chinese economic stimulus, underscores the competitive nature of the market.
As the industry moves forward, stakeholders will need to closely monitor these trends and make informed decisions to navigate the evolving landscape. The price adjustments seen in December 2024 are likely a precursor to further developments, with potential recoveries expected in early 2025 as market conditions stabilize.
The December 2024 rebar price list highlights downward trend in prices across all major manufacturers in Egypt. This development is poised to impact the construction industry positively, offering cost savings and potentially stimulating growth in the sector.
USD 1= EGP 50.90
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