Egypt, Japan discuss economic ties, preparations for TICAD conference    Real Estate Developers urge flexible land pricing, streamlined licensing, and dollar-based transactions    Madinet Masr in talks for three land plots in Riyadh as part of Saudi expansion    Egypt's PM tells Palestinian PM that Rafah crossing is working 24/7 for aid    Egypt's Sisi pledges full state support for telecoms, tech investment    EGP inches down vs. USD at Sunday's trading close    EGX launches 1st phone app    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Four steel licenses awarded to curb shortage as demand expected to rise
Published in Daily News Egypt on 30 - 12 - 2010

CAIRO: The government has handed out four new steel licenses in an attempt to reduce the shortage of the local steel supply, local media reports recently stated.
Through the new licenses, a further 2 million tons of finished steel and 1 million tons of billets will be made available to the local market, the Industrial Development Authority said, according to a Reuters report.
Beltone Financial stated that it is “not concerned about the effect of the increase in supply on the Egyptian steel market, as there is still a gap of around 1.5–2 million tons, annually, that are currently filled by imports.”
It continued by adding: “Such an investment would require 4–5 years to bear fruit.”
Port Said National Company for Steel, IIC for Steel Plants Management, Al-Marakbi and Al-Wataniya all came out on top of the bidding process for the new licenses.
The capacity that each firm will be allowed to put onto the market has yet to be decided, Beltone Financial stated in a note.
The government's decision was motivated by a need to free up capacity that was being left unused as a result of the inability of Arcelor Mittal — an international steel firm with operations in the Egyptian market — to exploit the license it had obtained, thereby forcing the government to revoke it from the firm, said Omar Tata, an analyst for Beltone Financial.
Highlighting the importance of ramping up local steel production, Reuters cited Mohamed Sayed Hanafy, general manager of the Chamber of Metallurgical industries, who stated that a burgeoning middle-class in Egypt is driving the construction sector and the government's spending on infrastructure, which should result in a 36 percent increase in reinforced steel production by 2017.
His firm also noted that Upper Egypt would be the main beneficiary, as it would provide the bulk of the new production.
In Tata's view, the decision should be regarded as “positive” for the construction industry, as it shows that growth in the sector is on the horizon, and that the private sector is coming back onto the scene.
Hany Samy, an analyst at CI Capital, also views the decision as positive for both the construction and steel industries, stating in a note that “companies obtaining the license would benefit from the shortage in supply of steel rebars in the local market.”
He added: “As for construction companies, the new steel capacities would meet their needs to avoid bottlenecks in construction activity.”
For infrastructure projects alone, for example, Minister of Trade and Industry Rachid Mohamed Rachid stated the government has allotted LE 50 billion for the coming year and a half. Such a boost in infrastructure investment will invariably bolster demand for steel.
CI Capital foresees steel rebars demand growing in 2011 by 9.1 percent, which is in sharp contrast to the 14.3 percent decline that took place between 2009 and 2010.
CI Capital also projects production to rise by 13.3 percent over 2011, which will result in the market operating at full capacity.
Demand for steel is divided largely amongst three main categories: private housing, large real estate developments, and infrastructure projects led by the government. Private housing represents 60 percent of steel demand, while large real estate developments and government-led infrastructure projects each account for 20 percent.


Clic here to read the story from its source.