PH
Ezz Steel, Egypt’s largest steel company led by billionaire Ahmed Ezz, has implemented another 12.5% price cut for rebar. Effective April 5, 2024, rebar will be sold at EGP40,700 ($855.53) per tonne, a reduction of EGP5,800 ($121.92) from the previous price of EGP46,500 ($976.81). This is the second price drop for rebar in three weeks.
Reinforcing bar, or rebar, is a steel bar used to strengthen concrete constructions. The price drop is due to recent developments in Egypt’s foreign exchange market. The Egyptian pound’s devaluation from last month has abated, with the black-market exchange rate now converging with the official rate of EGP47.3 per dollar.
Aside from rebar, Ezz Steel reduced flat steel pricing by 17.13 percent, lowering the price to EGP41,700 per tonne ($876.66). This move follows a previous price cut enacted in late February, when Ezz Steel reduced domestic ex-mill rebar prices by 12% to EGP46,500 per tonne.
Ezz Steel commented on the reduction, adding, “With banks now financing raw material imports, the black-market rate has become irrelevant, contributing significantly to the overall economic stability of the country.”
Egyptian billionaire and notable businessman Ahmed Ezz controls 60.7% of Ezz Steel (or 329,816,198 shares), cementing his status as a leading investor on the Egyptian Exchange and one of Egypt’s wealthiest persons.
Ezz Steel, led by Ahmed Ezz, is the largest steel producer in the Middle East and North Africa, according to the World Steel Association. The company has a total output of 5.14 million tons, outpacing competitors such as Saudi Arabia’s Hadeed and Emirates Steel.
Ezz Steel shares closed at EGP 58.30 ($1.2294) a share, up 0.52% from their opening price on the Egyptian Exchange this morning. This increased the group’s market value on the local stock exchange to EGP32.92 billion ($692 million).
