There has been considerable concern in the rebar market pending the announcement of Ezz Steel's prices for the month of July, amid expectations that the company would fix prices at LE 3050 a ton after the price of billet reached $400 a ton. The prices of other plants are expected to be LE 250 lower than Ezz's. Ezz, who imported 300,000 tons of rebar, faces a real problem after the demand on the imported rebar sharply declined. It is suffice to know that there are more than 1.2 million tons in the company's stores. The other companies are expected to increase their prices by LE 50 – LE 100 a ton, Ezz Steel said. Rebar producers have concerns over "Ezz's surprises", whether to increase or decrease prices.
The low demand on rebar during the last week has become a puzzle to all observers. However, there is limited demand for the Turkish rebar.
Indicators show that the prices of rebar would not increase during the current year, given the decline in demand after the consumers bought more than 2.5 million tons in the first quarter of this year. This quantity accounts for over 50% of the market's consumption in a year.
On the other hand, market sources said the security agencies closely follow the conditions of the suspended rebar plants and the companies that are threatened to stop production due to low prices and the importation of a large quantity of rebar. The owners of rebar plants threatened to close their plants due to the heavy losses they incur. The security bodies have concerns over the impact of such threats on the permanent workers.
Mohamed El-Marakbi, a member of the Chamber of Metallurgical Industries, said the steel rolling plants are a "time bomb" that could explode at any time after a number of plants are stopped or reduce production due to losses. El-Marakbi, Chairman of El-Marakbi Steel Company, said his company operates at the minimum capacity and pays the workers 50% of their salaries. However, it could not sell its production. Mohammed Hanafi, General Director of the Chamber of Metallurgical Industries, said most factories operate at minimum capacity in light of rebar low prices and the sharp decline in sales. The state-owned rebar plants, which have previously made LE four-billion profits, incur heavy losses every day due to low prices and the importation of huge quantities of rebar, he said.
Maj. Gen. Mohamed Abu Shadi, Head of the Internal Trade Sector at the Ministry of Trade and Industry, said it is the rebar plants that "conjured" the devil of the imported rebar, so they have to exorcize it. 99% of these companies imported rebar.
On the other hand, the Arab Iron and Steel Union (AISU) is studying a decision to impose anti-dumping charges on the imported Turkish rebar to reduce losses.
