Ezz Steel has reduced rebar prices for the month of July from LE3050 to LE2900 a ton. Such an unexpected step confused rebar plants, which expected that Ezz would fix prices. Market observers see such a step as a hard blow to rebar plants, as it aborted their attempts to increase the prices of the imported Turkish rebar from LE2850 to LE3000 a ton. Osama Abdel-Moneim, Commercial Director of Al-Heba & Cairo Steel Group, said Ezz aims to increase its sales, which were negatively affected last month because it was selling a ton LE250 higher than other plants. This unexpected reduction will contribute to reducing the importation of rebar during the coming two months, especially as the global billet prices rose yesterday to LE2620 a ton.
Hisham al-Digoy, distributor of rebar, said the small steel rolling plants would stop production in June after the prices of billet increased and Ezz decreased its prices. The observers said Ezz's decision to reduce prices was a reaction to Beshay Steel's, which took place last June, the decision to cut prices by LE250 a ton. Rebar plants are expected to announce prices for the month of July today amid expectations that they would backtrack on their intentions to increase prices.
