New investors in the cement business, especially Arish Cement, which is owned by the Egyptian armed forces, have forced several older cement companies to reduce their prices by 20 to 30 percent, bringing down the average price per ton from LE480 to LE410.
Arish Cement is selling for LE375 per ton, while the new Wadi Al-Nil Cement and Al-Seweedy Cement companies are selling for LE400 and LE420 respectively.
A Ministry of Social Solidarity official said the government's plan to increase supply by encouraging new investments has successfully reduced market prices.
“Supply now is greater than demand,” said Wadi Al-Nil Cement Sales Manager Wael Shokry. “Prices will continue to drop this year with the entry of more new factories into the market.”
Ahmed Shibl, an expert on Egypt's cement market, called for accurate studies on the real size of the market before granting more licenses for new factories so as not to kill the industry, especially since exports have come to a near halt.
Translated from the Arabic Edition