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Since early August, Egypt has raised natural gas prices for large industrial users from $5.75 per million British thermal units (MMBTU) to $6.75, a 17.4% increase. NK K/A51 steel Although official documentation has yet to be released, several steel companies have confirmed that the new prices have been applied in settlements. This adjustment, which affects energy-intensive industries such as steel, fertilizers, and cement, has a significant cost impact on the steel sector, particularly those using the DRI process.
According to calculations by Egypt's National Natural Gas Holding Company (EGAS), by the 2024/25 fiscal year (July 2024 to June 2025), based on current production and import ratios,NK K/A51 steel the cost of natural gas supply to power plants has risen to $6 per mmBTU. This cost is expected to continue to rise as domestic natural gas supplies tighten and the proportion of external procurement increases.
Egypt's total daily natural gas consumption currently stands at approximately 6.2 billion cubic feet (bcf), with industrial use accounting for over a third (2.1 bcf). However, local gas production is only 4.1–4.3 bcf. This, coupled with a surge in electricity demand for cooling in the summer, further widens the supply-demand gap, directly driving the government's price adjustment.
For the steel industry, gas price adjustments are further squeezing profit margins. Amidst pressured end-user demand and fierce export competition, steel mills will struggle to cover increased costs through price transmission in the short term. Furthermore, the further decline in the economic efficiency of energy-intensive process paths may accelerate adjustments in companies' energy mix and technological approaches. NK K/A51 steel Against the backdrop of a tightening energy price structure and frequent policy fluctuations, energy acquisition costs are becoming a core risk variable in Egypt's steel industry chain.
