Egyptian steel prices set to jump in 2010

Al Ezz Steel Rebars, the biggest independent steelmaker in the Middle East, forecasts that Egyptian steel prices will rise in 2010 amid increased demand from home builders and infrastructure projects.

"We are seeing better prices in 2010," Kamel Galal, Head of Investor Relations at Al Ezz, told Bloomberg by telephone yesterday without giving a specific forecast. "Demand for long products that are related to construction will continue to grow."

Al Ezz increased its ex-factory steel price in January by 3.4 per cent to E£3,050 (Dh2,042.55) per tonne , Galal said.

Meanwhile, according to a 2009 report on economic and social indicators of Egypt, construction sector indicators have shown the production of iron and steel fell from 406 metric tonnes at the end of November 2008 to 353 metric tonnes at the end of November 2009, a decrease of 13.2 per cent, while cement indicators increased production from 3 million tonnes in October 2008 to around 3.6 million tonnes in 2009.

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