Friday 13 Dec

Reports

Expectations of a 10% increase in rebar prices


Expectations of a 10% increase in rebar prices

The local market is anticipating a potential increase in rebar prices of up to 10% at the beginning of next week's trading. This expectation is primarily due to the significant rise in raw material prices on the Shanghai Stock Exchange, which has exceeded 10%.

Following the announcement of these price increases, many Gulf factories have indicated their plans to raise the prices of their finished rebar products by between 8 and 10%.

The recent surge in raw material costs can be attributed to three major Chinese cities easing restrictions on home purchases. This development has bolstered expectations for increased demand in the world's largest consumer of steelmaking components.

Several local traders and producers expect that rebar prices could rise by up to 10% in the upcoming Sunday's trading, as some factories have stopped production and sales until prices stabilize.

It's worth noting that rebar prices have witnessed a noticeable stability over the past two months, averaging around 38,000 Egyptian pounds per ton ex-factory, amid a significant decline in demand rates.