Egypt's Ministry of Trade and Industry estimates that annual demand for rebar in Egypt will reach 10.5 million tons by 2017, reported Arab Steel. Egypt's current annual rebar production capacity stands at 6.5 million tons. In its daily notes, CI Capital said the news is positive for local steel producers. “Strong demand for steel rebars driven by steady construction activity will guarantee local producers continue to operate at full capacity,” the firm said. However, the shortage will prove negative for local construction companies, “and as such we expect the shortfall to be made up either by expanding local capacity or importing steel rebars.” The ministry will offer a tender in early October for a license to produce rebar at a nominal annual capacity of 2 million tons as well as one million metric tons of billet per annum, Amr Assal, chairman of Industrial Development Authority, said in a statement. Assal said that the license in question was previously put up for tender in 2008 but as technical procedures were not completed at the time no license was issued, Arab Steel reported. The license will be offered again in a bid to meet market needs and to distribute the production capacity nationwide. The Ministry of Trade and Industry said that the re-tendering of the license is aimed at meeting the rising market demand for rebar, especially as the annual rebar consumption rate is increasing by 7 percent annually in Egypt.
