Media reported that the Egyptian steel importers will retaliate against the domestic producers by reducing prices between EGP 3100 and EGP 3250 per tonne, after the average price has reached EGP 3800.
The move came in response to Ezz Group announcing a price reduction to EGP 3400 ex factory and EGP 3520 for the consumer so as to beat Beshay Steel that sells for EGP 3700 and El Garhi Steel that sells for EGP 3600.
Sources said that Beshay and Garhi would compensate through the imported shipments arriving in the coming days.
The Ezz Group domestic market share amounts to 200,000 tonnes per month, with 90,000 tonnes accounted by Beshay and 20,000 tonnes by Garhi.
The sources expected more declines in prices when the quantities from Turkey arrive in February 2009, especially since most of these quantities were bought for EGP 2800.
A number of local producers accused the Egypt’s ministry of Industry of not supporting that national industry by allowing the dumping of Turkish steel. Mr Rafiq el Daw, VP of Egypt National Steel said that “The Turkish steel is sold in Turkey for USD 600, while it is exported to Egypt for USD 500, which means that there is suspicion of dumping the Egyptian market, and which requires the intervention of the ministry of commerce to legalize import and protect the national industry.”