Sales of local and imported steel bars dropped by 70 percent this week despite reduced prices. Experts were unable to explain the dip in sales, as demand remained high until the end of last year.
Meanwhile, the public sector steel company raised its prices by LE50 to sell for LE2750 per ton in light of a global increase in the cost of raw material.
"Demand is too low, though the product is sold at wholesale prices," said Hashem el-Degwy, a steel dealer. "Imported steel is sold for LE3100 per ton while some local produce is sold for LE3150 per ton."
Nevertheless, Ezz Steel, Egypt’s largest steel company, said it would continue expanding its plant in Ain Sokhna. The Egyptian Brass Company said it is injecting some LE22 million to modernize its aluminum galvanization production lines.
The Moroccan Steel Company will invest US$500 million in an effort to bring Morocco’s total steel production up to 2.5 million tons per year.
The Saudi al-Raghy Group will increase its production by one million tons a year, with an investment of SR800 million.
Similar expansions will take place in Qatar and Syria to increase production levels.
Translated from the Arabic Edition.
