A ton is 40,000 pounds.. Iron factories stop production and deliberately raise prices in agreement with the military gang

A state of confusion prevails in the building materials market and the contracting sector due to the successive rises in the prices of iron and cement, as the price of a ton of iron reached 40 thousand pounds, while the price of cement exceeded the barrier of 1950 pounds.

Experts and traders attributed the rise in prices to the tendency of some iron and cement factories, in agreement with the military gang, to stockpile goods, reduce production and sizes, and delay the delivery of goods for a period of 3 months with the aim of thirsting the market and raising prices.

They considered that the new increases in iron prices are unjustified and exaggerated, stressing that the iron price in Egypt is the highest in the world.

The experts called on the military state apparatus to intervene to control the markets and iron prices, warning of the impact of this on the contracting sector and real estate prices, which will witness insane rises.

They stressed that the iron and cement factories deliberately reduce their production, and the shortage of supply despite the high demand, which leads to an increase in prices, explaining that the iron and steel factories claim the scarcity of the basic raw billet in the industry, but they monopolize the commodity in the absence of control.

chaos

In this context, Ahmed Al-Zaini, head of the Building Materials Division of the Federation of Chambers of Commerce, said, “The iron market is witnessing turmoil, chaos, and successive price increases, stressing that there are unjustified rises in iron prices, and the military state’s apparatus must intervene to control markets and iron prices.”

Al-Zeini revealed in press statements that some iron companies have a shortage of supply, some companies export abroad, and others thirst the market to raise iron prices in Egypt.

He called on the regulatory bodies to intervene to monitor the market in order to establish discipline in iron prices, pointing out that some merchants supply 1,000 and 2,000 pounds per ton.

Al-Zaini explained that there are two types of iron in the Egyptian market. The first is for integrated iron factories (large factories, which amount to about 5 factories) and the second is for rolling mills (investment steel).

He stressed that the integrated iron factories have reduced the shares of agents, in addition to the fact that there are some famous factories that export their production abroad, which is reflected in the decrease in the volume of production, explaining that the factories import 90% of scrap and raw materials from abroad, and that the increase in production is linked to the provision of foreign currency from banks.

Al-Zaini emphasized that The price of iron in Egypt is the highest in the world, calling on the regulatory agencies and the military to intervene to set controls on the price of iron .

Market thirst

He said, “Since the beginning of the year, the iron market has witnessed turmoil and a kind of chaos, a successive increase in prices and thirst for the market, stressing that the price of some types of iron in light of the state of stagnation and lack of demand, exceeds 40 thousand pounds, or more than 1000 dollars, and this is the highest worldwide price.

turnip Zine to That there are factories between them and the consumer price of 8 thousand pounds and 9 thousand difference per ton, and the factories give some merchants and agents undisclosed prices, so the matter requires the intervention of the military state and the regulatory agencies to follow up the market and implement a kind of discipline .

He warned that these factors led to an increase in the cost and price of housing units, in addition to the cessation of many contracting companies and the occurrence of problems between them and the developers, stressing that everyone is affected by this situation.

Unjustified high

An agent of Ezz Steel, and a member of the Building Materials Division of the Chambers of Commerce, who refused to be named, said, “The prices of iron and cement have risen unjustifiably and exaggeratedly during the past 3 months, pointing to the rise in iron prices from 17 thousand pounds to 35 thousand pounds, while cement rose from 1500 pounds to 1950 pounds.

He emphasized that factories exert pressure on consumers and merchants, represented in delaying goods, cutting sizes, storing goods, and scarcity of supply, pointing out that the aim of the past 4 tricks is to ignite a supply crisis to raise prices.

Ezz’s agent pointed out that factories, whether iron or cement, deliberately reduce their production. Steel factories claim the scarcity of basic raw billets in the industry, which decreases supply amid high demand, which leads to higher prices.

He explained that there are merchants who send requests to iron factories that are not approved, despite the presence of stored goods, pointing out that the crisis of rejecting requests has been going on for 3 months.

And Ezz’s agent continued, the crisis caused the suspension and layoff of a large number of workers who depend on building materials, especially irregular workers, warning that the rise in iron and cement prices causes the rest of the building materials to rise, which threatens the real estate sector.

He admitted that the iron and cement markets are based on monopoly, and the prices that are offered are by agreement between all factories, and not as happens abroad where price determination is based on competition, stressing the need to open the door for imports to restore competition to the market and reduce prices.

production companies

AndAbdelaziz Qassem, Secretary General of the Building Materials Division of the Chambers of Commerce, said, “Rebar prices reached 3,800 pounds, compared to 3,450 pounds last week, and he expected the price to exceed 4,000 pounds during the current month.”.

Qassem indicated in press statements that all production companies have stopped pumping new quantities since last week, pending agreement on new prices for next April..

He stressed that the contracting market is going through a stage of stagnation, and most of the merchants have stopped buying and selling now, denying the merchants’ relationship with these increases and holding the major iron producers responsible for exaggerating prices..

Qassem called on the anti-competition and consumer agencies to intervene to control the successive price increases and to verify whether the global price is the only reason for this increase, or are there other reasons?