Ezz Steel, Egypt’s leading steel producer, reported a profit in the first half of 2024, according to its financial statement. The company achieved a profit of EGP 2.27 bln (USD 46.9 mln), reversing a loss of EGP 810 mln in the same period last year.
Net sales in H1 2024 amounted to EGP 100.68 bln (USD 2.07 bln), up from EGP 62.26 bln in H1 2023. Exports reached USD 822 mln, with hot-rolled coil (HRC) exports accounting for USD 544 mln (66pct) and rebar exports contributing USD 278 mln (34pct). This is a slight increase compared to USD 794 mln in H1 2023, where HRC exports were USD 509 mln and rebar exports USD 284 mln.
Egypt’s rebar consumption rose 9pct to 3.059 mln tons in H1 2024, though Ezz Steel noted that demand remains low due to a weak starting base. Domestic HRC consumption fell 12pct YoY to 668,000 tons, attributed to a slowdown in infrastructure projects. However, the company expects consumption to recover in the near future.
Ezz Steel expressed concern over a surge in imports, exacerbated by reduced protective measures. Billet imports jumped to 382,000 tons in H1 2024, with 70pct arriving in Q2 2024 following the Egyptian currency devaluation. This represents a 446pct increase from 70,000 tons in H1 2023. The company criticized the increase, arguing that billet imports circumvent anti-dumping measures on reinforcing steel by replacing fully integrated production with rerolled billets, which add only about 10pct of the value.
HRC imports in H1 2024 also surged 31pct YoY to 333,000 tons, with the market share of imports rising by 19pct. Ezz Steel warned that this poses a significant threat to local producers and called for government intervention to protect the HRC sector.
In response to the European Union’s recently announced anti-dumping investigations on Egyptian-origin HRC, Ezz Steel emphasized its commitment to fair trade and full compliance with WTO principles. The company plans to cooperate fully with EU authorities, providing necessary data and defenses to protect its interests and those of the Egyptian steel industry.
Ezz Steel has a production capacity of 7 mln tons of flat and long steel products at four fully integrated steelmaking plants in Egypt.
1 USD / 48.4 EGP
