Egypt industry minister meets Ezz Steel, Beshay Steel and Suez Steel

Daily News Egypt reported that Mr Mounir Fakhry Abdel Nour, Minister of Industry and Foreign Trade of Egypt met with Ezz Steel, Beshay Steel and Suez Steel - the three largest companies producing iron and steel in Egypt, in order to discuss the repercussions of the increase in energy prices on steel mills.

The prices were recently approved by the government in the context of several decisions to increase fuel and energy prices. The government raised gas prices by USD 3 for the iron and steel industries. The price for 1 m British Thermal Units of energy now stands at USD 7.

Mr Mohamed Hanafi director general of the Chamber of Metallurgical Industries in the Federation of Industries attended the meeting and said that the steel mills asked the minister to review the decision to increase the prices of gas and electricity for steel plants. This came with special emphasis on large plants that produce iron at various stages, as the cost of the product has been raised to EGP 280 per ton as a result.

Mr Hanafi said that “We explained to the minister that the sponge iron industry uses gas as one of the inputs and not only as a source of energy. There also can’t be two prices for electricity, in which it costs EGP 34 in normal times and EGP 51 in peak times, because the steel plants which have melting furnaces do not have a peak time or a normal time. They cannot just stop and re start work.”