Egyptian steel mills are sharply reducing production as weak sales weigh on the domestic market, with some plants temporarily suspending operations, according to local media reports. Hassan El-Marakby, chairman of El Marakby Steel Group, said that demand for rebar in the domestic market is at near-record lows, forcing many producers to partially halt production.
He said mills have been struggling to generate profits and are instead focused on maintaining operations amid difficult market conditions. Production costs have nearly doubled during 2026 due to higher electricity, diesel and labour costs, while selling prices have increased only once, in April, El-Marakby said.
Rebar prices currently average EGP 35,000-37,000 (USD 693-733) per ton, according to the report. Egyptian steelmakers raised rebar prices by around 8pct in April amid higher energy costs and exchange-rate volatility. The Egyptian currency has since strengthened by around 9pct against the USD, reaching about EGP 50.4 per USD from nearly EGP 55 per USD in April.
However, El-Marakby said lower exchange rates have not offset higher energy and raw material costs, with scrap prices rising to above USD 410 per ton from around USD 360 per ton last year. El-Marakby also said his company plans to obtain the tender documents for a new billet production licence offered by Egypt’s Industrial Development Authority (IDA), with the potential investment size yet to be determined.
The IDA recently offered eight new licences for billet production with combined capacity of 2.8 mln tons per year. Four licences will each have capacity of 500,000 tons per year, while the remaining four will each have capacity of 200,000 tons per year. Companies can obtain the tender documents between August 11 and 20, according to the local media reports.
The new licences are intended to increase domestic billet supply, support local rolling mills and reduce reliance on imports, the IDA said.