The Clap
The Ministry of Trade and Industry is mulling over canceling rebar steel import fees.
What
The ministry is considering this decision to support real estate developers in importing raw materials amid sharp increases in local steel prices.
So What
Fluctuations in steel prices exert a cost-push impact on some sectors, notably the real estate industry, by elevating construction costs.
Some Context
In July 2023, Egypt imposed fees on steel imports from China, Turkey, and Ukraine for a duration of four years, with rates of 15%-25%.
Local steel prices jumped by 78% YoY, reaching EGP 48K per tonne in January 2024. This jump was prompted by a USD shortage that led to challenges in importing raw materials, which in turn negatively affected the production of many steel producers, according to Asharq Business.
