Over the recent period, the prices of steel have been gradually increasing. Accordingly, this affected the steel factories in the market, which have consequently increased their prices by around 1000 EGP. Thus, the lowest price per ton of steel reached between 14,050 EGP and 14,500 EGP for factory delivery, and this has had a ripple effect on cement prices and other building materials.
Although Egypt does not have a significant demand for steel and building materials, this time, the reason originates from abroad. The issue began when China decided to reduce its production volume in an attempt to reduce environmental pollution. In addition, it increased the demand for steel from abroad. Many factories around the world also reduced their production due to the precautionary measures of COVID-19.
This excludes the increase in global inflation rates, which affected the prices of all commodities on the stock exchange, including steel.
Increase in global inflation rates affected all commodities on the stock exchange including steel.
It is expected that the demand for building materials will increase in the coming period due to the introduction of new construction permit restrictions in a number of cities. Accordingly, this will allow real estate investors to restart their activities after stopping for months.