The Industrial Development Authority (IDA) will grant five new steel plant licenses within the coming three months to meet requests from several steel producers in Egypt for capacity extension, according to Al-Mal newspaper.

Only currently established companies would be eligible to bid for the licenses, indicating that no new players are expected to enter the market.

According to the IDA head, Ismail Al Nagdy, the energy required for these licences is already available.

In July, Egypt's cabinet granted four companies licences for steel plants in the country, as the government seeks to boost production and lower imports of supplies for the construction industry.

The companies won the licences in December but were later given an extension to make the required payments.

The four firms are Port Said National Company for Steel, IIC for Steel Plants Management, Al-Marakbi and Al-Wataniya.

In August, Egypt's Ezz Steel raised its steel rebar price by 3.1 per cent to $857.1 per tonne (LE4,800) after keeping the price fixed at $830.30 (LE4,650) in July and June.

Ezz Steel, the chief component of the Arab world's largest steel conglomerate, reported 2010 net profit of LE252 million ($42m), while net sales rose 32 per cent and gross earnings increased 29 per cent.

Egyptian group Ezz Steel said its 2010 consolidated net profit almost tripled, buoyed by strong domestic demand for long products and the restart of a flat steel plant.