Egyptian Demand for Steel Demand fell 7.5 pct in May

Egyptian demand for steel fell a monthly 7.5 per cent in May, official statistics from the Cabinet’s Information and Decision Support Centre (IDSC) showed on Monday. Egypt ordered around 514,000 tonnes of steel rebar that month, significantly less than in April. Average steel prices slipped 4.3 per cent month-on-month, recording LE4520 per tonne in May compared to LE4720 in April.

Actual steel production, however, saw 14 per cent growth. Around 581,000 tonnes were locally produced in Egypt in May versus 510,000 tonnes in April. "The decrease in steel consumption was related to Egyptian steel only. Factories here replaced local products with Turkish rebar, which is cheaper at around LE4,400 per tonne," explained Ahmed El-Zeiny, head of the building materials division in Cairo's Chamber of Commerce. Consumption may also have been affected by political uncertainty in the run-up to late May's president elections, said El-Zeiny.

Such tension is continuing with the decision on Sunday of Egypt's new president, Mohamed Morsi to reinstate parliament, revoking an earlier military decision. Parliament reconvened for a few moments on Tuesday morning. "It was a wise presidential decree. [If it is successful] it will positively impact investments," El-Zeiny told Ahram Online. Cement producers also saw a slight downturn in April, with sales dropping 6.2 per cent on the month before. Egyptians bought 4,431.2 tonnes of cement in April, down from 4,725.3 tonnes in March.