Turkish steel no more a resource for Egyptians

Ahram Online, Wednesday 22 Dec 2010

Prices of imported Turkish steel rises, echoing an overall increase in raw materials. Turkish steel reached almost the local prices, with LE4100 ($706.4) per ton

Steel 1
The difference between Turkish steel and local one is almost LE100 ($17.22). (Photo: Reuters)

Steel imports from Turkey were stopped due to an upward trend in prices that began early last month.

In the last two days, Turkish steel prices rose to $665 per ton, compared to $635 in the previous week, Kamal El Kharbatly, the chairman of Egyptian Steel Trading Co. for Steel, told Al-Mal business daily.

According to Kamal, traders decided to terminate steel imports because they did not achieve a high profit margin, with the current price difference between imported steel and the local one standing at only LE100 ($17.22).

The prices of raw materials have increased substantially in recent days, affecting the price of Turkish steel, as well. Consequently, importers have decided to not sign new contracts for future shipments, explained chairman of El Saftawy Steel Trading Co., Abdo El Saftawy.

The local companies will raise their prices next January, echoing the increase in prices of raw materials, predicts Abdo.

Currently, local steel is sold at LE4200 ($724) per ton, while imported steel has reached levels as high as LE4100 ($706.4) per ton.

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