Surprise Drop in Iron and Cement Prices in Egypt on February 23, 2024
In a surprising turn of events, the prices of iron and cement in Egypt have witnessed a significant decrease on Friday, February 23, 2024, amidst fluctuations in the dollar rate in the parallel market.
In the latest market updates from Egypt on February 23, 2024, the construction industry experienced a notable decrease in the prices of key materials. Iron and cement, two fundamental components of the construction sector, have seen their prices drop significantly, delivering a mix of shock and relief to business professionals, technical professionals, and research analysts within the cement industry.
The decrease in iron prices comes after a period of steady increases, with prices previously surpassing the 65,000 Egyptian Pound mark. This recent adjustment saw a decrease of 15,000 Egyptian Pounds, attributed largely to the ongoing rise of the dollar rate in the parallel market, while the official bank rate remains at 30.85 Egyptian Pounds. Egypt, a country with a production capacity of approximately 7.9 million tons of rebar and 4.5 million tons of billet annually, imports around 3.5 million tons of billet, according to the Chamber of Metal Industries' data.
The impact of this price change extends beyond the factory gates, with added costs including a value-added tax (VAT) ranging from 1,000 to 2,000 Egyptian Pounds and transportation fees affecting the final consumer prices for iron. Similarly, cement prices to consumers also include additional charges ranging from 100 to 200 Egyptian Pounds.
The average price of iron from Ezz Steel settled at 49,920 Egyptian Pounds per ton, with other major producers like Beshay Steel and Suez Steel for Steel offering their products at competitive prices. Cement prices also adjusted, with the price for reinforced cement hitting 1,980 Egyptian Pounds per ton, among other variations across different brands.
This unexpected price drop is closely watched by industry stakeholders, offering a potential respite for construction projects but also raising questions about the underlying market dynamics and future trends in the construction materials sector.
