CAIRO: Following the past hike in steel prices,a number of steel importers and traders in Egypt have already agreed on buying large quantities of Chinese steel as a step to invade the Egyptian market once they get a chance, Managing Director of Suez Steel CompanyRafik Al Daw told Youm7 Thursday.
“Limited quantities of Chinese steel have already entered the Egyptian markets” he said, pointing out that allowing the import of more quantities of Chinese steel will destroy the local steel industry.
Al Daw also said that the Chinese government offers subsidies on steel products at a rate of 18 percent of the total cost, which allows manufacturers to export steel at low prices.
After Eid, Egyptian steel companies have added 150 EGP per ton, whichcaused prices to reach 5200 EGP per ton while imported steel reached 4900 EGP per ton despite international stability in steel prices at $570 per ton, Mubasher reported August 2.
Mohammed Hanafi, the Director of the Chamber of Metallurgical Industries atthe Federation of Egyptian Industries, announced that the harsh decline in gas quantities is the core reason for adding extra sums to keep the market at a balanced level, Youm7 reported Wednesday.
“The shortage in oil supply caused between 8-10 hours of power cuts, which caused delays in production lines at steel companies, he said, pointing out that “Power shortages have caused the production volume to amount to 350 thousand tons during the past month(July), in comparison to 700-800 thousand tons during each of the past few months.”
To overcome the shortage of steel production, several steel importers have already imported quantities of Chinese steel amounting at 5200 tons with valuesestimated at $550 per ton.
Hanafi called on the government to surround the import of Chinese steel in order to protect local industries and citizens from its low quality and criterions, he added.