Egypt : Steel exports drop 34% January – November 2019
Recent data issued by the Egyptian Export Control Authority revealed that Egypt’s iron and steel exports fell 34%, recording $ 635 million in January – November 2019 compared to $ 968 million in the same period of 2018.
Data on controlling Egyptian exports revealed that iron and steel exports to Sudan decreased by 26%, recording $47 million in first 11 months of 2019, compared to $63 million in the same period of 2018, and exports to Spain fell 57% to record $46 million against $109 million . Exports to America fell 52% to $ 39 million, compared to $ 83 million in the same period in 2018.
The data also revealed a decline in exports of iron steel to Italy by 75% to record $ 36 million in January – November 2019 compared to $ 147 million in the same period in 2018, and exports to Jordan decreased by 10%, recording $ 26 million against $ 28 million.
The data also revealed that iron exports to Algeria decreased by 60%, recording $18 million , compared to $44 million . Also, Syria fell 76%, recording $16 million , compared to $67 million . Also, it decreased to Uganda $11 million compared to $12 million.
The steel industry in Egypt suffers from obtaining natural gas at a relatively high price of $ 5.5 per million thermal units, after reducing this price from $ 7 per million thermal units in October 2019, where steel companies in Egypt see this price as still high and not competitive.
This high price resulted in several challenges for the steel industry sector, including the high cost of natural gas in Egypt, representing 12% of the cost of producing tons, compared to between 2: 6% in regionally competitive countries, despite the fact that Egyptian factories use the same rate of consumption per ton, which is From 11-13 million thermal units on average, and the price of gas also contributed to putting an additional cost of 40 dollars on average on each ton of reinforcing steel produced in Egypt.