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Sunday, 24 April 2016

Most steel factories buy USD from parallel market- Metallurgical Industries Chamber

The USD shortage has driven most steel factories to buy USD from the parallel market, said Chamber of Metallurgical Industries head Gamal El Garhy. Average production cost has gone up by about EGP 1,800 per ton of domestic iron, driven by a 24% EGP devaluation against the USD and production inputs increasing in cost by USD 45-142 per ton. The government decided to reduce the cost of natural gas to steel factories to USD 4.5 mbtu from USD 7 mbtu, but the decision has not been implemented, said El Garhy, suggesting steel factories are operating at 50% capacity due to the USD shortage and the gas price. (Read in Arabic)

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