Ezz Steel, Egypt’s largest steel producer led by billionaire Ahmed Ezz, has implemented a further 12.5-percent price reduction for rebar. Effective April 5, 2024, rebar will be sold at EGP40,700 ($855.53) per tonne, a decrease of EGP5,800 ($121.92) from the previous price of EGP46,500 ($976.81). This marks the second price cut for rebar in three weeks.
Rebar, short for reinforcing bar, is a steel bar used to strengthen concrete structures. The price reduction is attributed to recent developments in Egypt’s foreign exchange market. The Egyptian pound devaluation witnessed last month has subsided, with the black-market exchange rate converging with the official rate at EGP47.3 per dollar.
Ezz Steel slashes flat steel prices
Beyond rebar, Ezz Steel also cut flat steel prices by 17.13 percent, bringing the price down to EGP41,700 per tonne ($876.66). This move follows a previous price reduction implemented in late February, when Ezz Steel decreased domestic ex-mill rebar prices by 12 percent to EGP46,500 per tonne.
Ezz Steel commented on the reduction, stating, “With banks now financing raw material imports, the black-market rate has become irrelevant, contributing significantly to the overall economic stability of the country.”
Ahmed Ezz’s Influence on the steel industry
Egyptian billionaire and prominent industrialist Ahmed Ezz owns 60.7 percent of Ezz Steel (or 329,816,198 shares), solidifying his position as a top investor on the Egyptian Exchange and one of Egypt’s richest men.
Ezz Steel, under Ahmed Ezz, has become the biggest steel producer in the Middle East and North Africa, according to the World Steel Association. The company boasts a total output of 5.14 million tonnes, eclipsing competitors like Saudi Arabia’s Hadeed and Emirates Steel.
As of today’s close, shares in Ezz Steel were trading at EGP 58.30 ($1.2294) per share, up 0.52 percent from the opening price on the Egyptian Exchange this morning. This pushed the group’s market capitalization on the local bourse to EGP32.92 billion ($692 million).
