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Re-Bar price fall down in EGYPT

(Egypt)Ezz Steel announces second round of price reduction on rebars for domestic market

Ezz Steel has announced a new price reduction by about 550 Egyptian Pounds per ton for the sale of its rebars to the domestic market making its selling price for October at 5150 Egyptian Pounds including the sales tax. This is the second reduction announced by the company within less than two months. In August, the first reduction of 820 Egyptian Pounds was announced, which was effected from September 2008. It is expected that this reduction will encourage other producers in the market to reduce the prices to the domestic market.

These reductions take place amongst expectations of more reductions in the prices of the rebars in the world markets which have seen sharp decline during which they lost approximately one third of their value within less than two months. Eng. Ahmad Ezz has asserted in a meeting of the staff that the sales value of the company in 2008 will reach 22 billion Egyptian Pounds denoting that the total return on sales amounted to 9.2%

He also pointed out that the Group will initiate new investments in addition to investments of USD2 billion in Algeria. He also confirmed that the reinforcing steel market in Egypt is open for the entry of new producers, as over the past five years 5 new producers entered the market and acquired 15% of the total production capacity. The market is also free from any impediments against imports.

The prices of the reinforcing steel in the Egyptian market are now between 5900 ? 6500 Egyptian Pounds per ton amidst expectations of having more price reductions of this product next month.


2008-10-6

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