Will Egypt's Revamp Plan for Railways to Support Country's Steel Demand?

According to market reports, Egypt has announced its large-scale programme to revamp the country's national railways network in order to solve its transportation problem.
On Monday, Egypt's Minister of Transport Hisham Arafat has declared a project to revamp the country's national railway network, with EGP 55 billion (USD 3.11 billion) to be invested up to 2022. He also added that Egypt has a clear and comprehensive plan to develop all aspects of the railway system, whether in infrastructure, tractors, train carriages, and signals.

This increased investment in the sector is likely to boost the domestic demand for steel in the country. However, the demand for rails is likely to be met by imports as the country do not have an in-house production facility for the same.

The project includes revamping of existing rail lines, building of new ones and development of infrastructure for the same. However, as per market reports, securing finances for the project is going to be a challenge for the country's government and Egypt's Ministry of Transport will conduct negotiations with some international funders including the European Bank for Reconstruction and Development to secure loans.

Egypt's railway system has a poor safety record, with frequent deadly collisions often blamed on lack of maintenance and poor management.

This announcement came a month after Egypt's parliament approved several government-drafted amendments to the 1980 law that regulates the performance of the debt-laden Egyptian Railway Authority (ERA), with a view to rescuing the vital railways' sector. The amended law is described as a crucial step to revive the ERA, which suffers from massive debts, outdated operation systems, and crumbling train locomotives and wagons.

Egypt's rebar prices remain unchanged this week

Last week SteelMint reported that Egypt's El Marakby cut down its rebar prices by EGP 150/MT (USD 8/MT) and offered the same at EGP 12,500/MT (USD 707/MT), ex-works, including VAT of 14% whereas other producers kept their rebar prices unchanged.
However, this week sources have informed that rebar prices of all the key producers have remained stable with no revision.

Ezz Steel, Beshay Steel and Suez Steel are offering rebar at EGP 12,790/MT (USD 727/MT), EGP 12,800/MT (USD 725/MT) and EGP 12,775/MT (USD 724/MT) respectively on ex-works basis. Prices include VAT of 14%.

"The sentiments in Egypt rebar market over past two weeks continue to remain negative despite positive sentiments in China and CIS region, as the local demand in Egypt at present is quite tepid", said a re-roller based in Egypt.

The billet offers to Egypt from CIS region are heard at USD 540/MT, CFR basis, down by USD 5/MT against last week.