Traders and importers are expecting a decline in prices of steel reinforcement-bar and stability in the market within two weeks, as Turkish steel import will resume after Trade and Industry Ministry decided renewing anti-dumping duties on steel imports.
Steel prices an saw unsubstantiated increase in price last week. Each of traders and steel producers blamed the increase on the other, while Chamber of Metallurgical Industries assured factories were sticking to the price announced by beginning of the month. Moreover, it accused traders of causing this chaos and resorting to stock piling. However, traders confirmed a lack in steel and that factories reduced amounts in comparison to last year.
Tareq abdel Azim, Turkish steel importer, referred to several contracts with Turkish factories to resume steel importing, which has been suspended for more than one year. He expected end of price hikes within two weeks as the imported steel will return back, which will force local factories to reduce prices.
Abdel Aziz Qassem, member of construction materials division, said steel prices increased up to LE5600 per tons, compared to LE5100 last week, due to reduced received amounts from factories.
Steel producers, according to Qassem, did not specify reasons of production decline during the meeting between the division members and supply minister on Wednesday. However, they pledged to resolve the crisis within few days. Qassem attributed the price hike on increasing demand of steel when the price increased, causing alarms it would further increase.
He also referred to the disappearance of important types of steel, pressuring consumers to search for them in other governorates.
Mohamed Hanafy, executive director of metallurgical industries chamber, said weekly reports submitted by factories to Supply Ministry indicated to increase in received steel amounts this month, in comparison to the previous month by 10 to 15 percent, which drop accusations against factories.
He added that the chamber rejected the ministry’s decision on canceling the anti-dumping duties on imported steel.
Edited translation from Al-Masry Al-Youm
