The Egyptian Cabinet informed iron and steel manufacturers that it has authorized the application of reduced gas prices for the sector as of October, instead of September, reported Al Borsa. Accordingly, the selling prices of gas will decrease from $7 to $4.5 for every 1m thermal unit. This is expected to save about $1.5b annually.
Head of the Chamber of Metallurgical Industries (CMI) , Gamal El Garhy, stated that the decrease in gas prices is an important step for the industry in order to help alleviate the burden caused by fluctuations in USD exchange rates, which have resulted in the increase of operational cost to EGP 600 per ton of steel.
The companies that will benefit of the reduce pricing include Ezz Steel, the Egyptian American Company for Steel Rolling (Beshay Steel Group) and Solb Misr Group.