Major Egyptian steelmakers are seeking support from the government by requesting a further reduction to natural gas prices and an increase in the steel sector’s allocation of for- eign currency, of which Egypt is experiencing a shortage. The Egyptian government announced in March it planned to reduce the price of natural gas supplied to steel mills to $4.50/mn Btu from $7/mn Btu. The reduction was offered on the condition that steel producers would be working at full capacity so that “they would stabilise and maintain domestic rebar prices”, an Egypt-based trader said.
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