Egypt Metals Industry Research Report Q4 2012
BMI''s Egypt Metals Report for Q412 examines the impact of political developments on domestic demand and output in 2012. The report examines the influence of the weak Egyptian pound on the sector and whether depreciation is sufficient to compete in an over-supplied regional market. It also examines the promise of expansion in primary aluminium smelting with Egyptalum seeking to expand production to 400,000 tonnes per annum (tpa). The report also analyses the trends in export markets, particularly in relation to the surge in steelmaking in the Arabian Gulf region. In the first seven months of 2012, base effects led to 2.6% growth in crude steel output to 3.9mn tonnes (mnt). Towards the end of the period monthly crude output rates appeared to be on a strong upward trend. However, flat and long sales on the domestic market were sluggish with rebar at very low levels due to a climate of uncertainty around the elections as well as a slowdown in activity associated with Ramadan. B...