Ezz Steel hikes April prices by 25pc
Cairo, April 1, 2010
Egypt's largest steelmaker Ezz Steel has raised its steel prices 25 per cent to recoup soaring raw material costs, it said on Thursday.
The firm set its April prices at EGP4,100 ($745) per tonne, up from EGP3,280.
The increase comes after an announcement by top global producers Vale and BHP Billiton of changes in their pricing models.
Shares in Ezz Steel climbed 6 per cent by 1050 GMT to EGP22.40, the highest intraday price since September. Egypt's benchmark index gained 0.9 per cent.
'International raw material prices are going up, and iron ore prices have increased by 90 per cent; therefore steel prices are going up,' Kamel Galal, Ezz Steel's investor relations manager told Reuters on Thursday.
Spot iron ore has more than doubled in price since September as steelmaking worldwide recovers from the financial crisis, topping $150 a tonne last week.
Ezz Steel said that steel prices are rising on the back of growing international and domestic demand with several countries recovering from the global economic crisis, particularly in China and most emerging markets. – Reuters