Steel prices in the local market jumped by 3,000 to 3,500 Egyptian pounds ($57 to $66) per ton in recent days to approach 40,000 pounds (about $760). The surge is driven by anti-dumping duties on steel billet imports and a rising dollar exchange rate against the pound, according to four industry sources who spoke to Al Manassa.
Last September, the Ministry of Investment and Foreign Trade imposed a 16.2% anti-dumping duty on billet imports, with a minimum of 4,613 pounds ($88) per ton for a 200-day period. This was followed by a government decision to impose a 13% duty, with a minimum of $70 per ton, starting this April.
Under the government decree, these duties are scheduled to decrease gradually over three years. They will drop to 12%, with a minimum of $64 per ton, for one year starting in September, and eventually to 11%, with a minimum of $59 per ton, until September 2028.
Ayman Ashry, chairman of Ashry Steel, said the recent hikes are not solely due to rising raw material costs. Instead, they are primarily linked to anti-dumping duties and additional costs borne by the industry, chief among them the dollar exchange rate. Ashry told Al Manassa that the rising cost of production reflected immediately on the final product prices amid mounting pressure on producers.
Ahmed El-Zaini, head of the Building Materials Division at the Federation of Egyptian Chambers of Commerce, noted that several major companies raised their prices this week; Suez Steel rose from 36,500 to 39,300 pounds per ton, Beshay Steel from 37,600 to 39,500 pounds, and El Marakby Steel from 36,300 to 39,200 pounds. Ezz Steel recorded approximately 39,800 pounds per ton.
El-Zaini explained to Al Manassa that the average increase reached about 3,000 pounds per ton, bringing the consumer price to between 39,000 and 40,000 pounds. He noted that price hikes typically begin with major players before other factories follow suit.
This marks the second increase since the start of the year; companies previously raised rebar prices by 2,000 to 3,000 pounds per ton to offset rising costs, El-Zaini previously told Al Manassa.
Conversely, producers warned of broader repercussions for the industry. Ashraf El-Garhy, vice chairman of Garhy Steel Group, said that imposing anti-dumping duties on imported billets prompted integrated plants to raise their prices. This led to an increase in local billet prices to approximately 34,000 pounds, a jump of nearly 3,500 pounds.
El-Garhy told Al Manassa that the crisis extends beyond price hikes to a shortage in billet supply. This has caused several small factories, particularly rolling mills, to halt operations. These mills have suffered from supply shortages and high import costs since last October.
He noted that the current situation threatens a sector employing between 15,000 and 20,000 workers, adding that factories have submitted memorandums to relevant authorities but have yet to see decisive solutions. “The current situation suggests the government is moving toward relying on a limited number of major factories,” El-Garhy added.
Mohamed Hanafi, director of the Chamber of Metallurgical Industries at the Federation of Egyptian Industries, attributed the recent spike primarily to the dollar’s appreciation. He explained that roughly 80% of industry inputs are imported, making the sector highly sensitive to exchange rate fluctuations.
Hanafi told Al Manassa that while global raw material prices saw modest increases of $5 to $10 per ton, these have a minor impact compared to the exchange rate. Meanwhile, energy and maritime shipping costs have risen, driven by increased insurance and transport fees, doubling the burden on producers and importers.
