NEWS

Steel Price Expected to reach EGP 6,000 next June Owing to Dollar Revaluation

Monday, Feb 29, 2016

Member of the Egyptian Businessmen’s Association and the Egyptian Federation for Construction and Building Contractors Daker Abdallah expected the price of steel will be EGP 6,000 per tonne by the end of June if the dollar revaluation is not controlled on the informal market.

The price of steel currently ranges between EGP 4,500 and 4,800 per tonne. Abdallah warned of the rising dollar exchange rate and that the cost of steel production will increase in the upcoming period as a result of the high price of the dollar against the pound and due to importing the billet material used in manufacturing steel from abroad.

This increase will coincide with the accelerated pace of launching major national projects in the coming period, which will lead to an increase in the demand for steel, another reason for increasing its price.

The state must resolve this crisis to avoid affecting the real estate sector as a whole and the rise of housing unit prices by at least 20%. Abdallah recommends wholly liberating the dollar exchange rate and floating the Egyptian pound, that this step will put an end to the continuous increase in the dollar price.

 

dailynewsegypt.com

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