Demand for iron decreased this week after companies increased its price by an average of LE200 per ton. Meanwhile, importers have been waiting for Ezz Steel to set the selling price of Turkish iron since May 2009. The selling price is expected to be fixed at LE3100 a ton to discourage Egyptians from importing iron.
The recent increase in iron prices by LE170 to LE250 per ton was unjustified, said Major General Mohamed Abu Shady, head of the Internal Trade Sector. Iron companies have been raising their prices under the pretext of increasing pellet prices internationally; however, these price increases only happened last month, he explained.
The international price of iron has gradually decreased this week, he said, which will likely lead to an increase in the amount of iron imported from abroad. The price differential between local and imported iron is approximately LE300.
Since 65 percent of the pellet used in Egyptian factories is produced locally, there is no reason for the higher prices at the present time, he added.
Hashem el-Degwi, an iron distributor, said the demand for iron was limited last week. Traders keep large amounts of iron, which they bought at last month’s selling price, and consumers waited for prices to drop again.
Translated from the Arabic Edition.
