Summary of Egypt Rebar Steel market from November 10th to November 17th

This week, the domestic price of deformed steel in Egypt was around $1130-1290 per ton EXW (including 14% value-added tax), an increase of $40-50 per ton month on month. Compared to the previous week's $1035-1290 per ton, the fluctuation range of the HX420LAD+ZF steel quotation has narrowed.

So far this year, Egypt has been facing economic problems such as foreign exchange shortages and currency depreciation. According to relevant data, the current trading price of the Egyptian pound is 30.94 Egyptian pounds to 1 US dollar. With the rapid decline in the value of the Egyptian pound, the government has a shortage of hard currency and a black market in foreign exchange has emerged. Recently, in the foreign exchange black market, one dollar can be exchanged for about 48 Egyptian pounds, or even higher. At the same time, intensified currency fluctuations have pushed up the prices of deformed steel bars on the black market, and many Egyptian HX420LAD+ZF steel mills have also raised official prices to meet market demand. However, due to the government's measures to crack down on illegal construction, only businesses with construction permits can purchase construction materials, which to some extent inhibits the shipment of HX420LAD+ZF steel mills, and the main market demand is still based on hard demand.

It is reported that if currency fluctuations intensify, bringing the Egyptian pound close to the black market level, the Egyptian government may reintroduce foreign exchange controls. Overall, it is expected that the Egyptian rebar market price will mainly fluctuate in a narrow range and tend to be strong next week.