Cairo, Egypt (CNN)– Over the past few days, the Egyptian market has witnessed a decline in prices, especially for cars with a value ranging between 150-500 thousand pounds ($3164.52-10548.4) depending on the model, according to the prices announced by car dealers, as well as iron with a value of 10 thousand pounds ($210.96) per ton. According to merchants.
This decline comes As a result of the rise of the pound against the dollar in banks by more than 6% during the past two weeks in light of the continued concession of dollar holders, and the return of remittances from Egyptians abroad through official channels.according to official data.
In a related context, Prime Minister Mostafa Madbouly met with a number of manufacturers and merchants to announce the start of reducing commodity prices by a rate ranging between 15-20%, with the percentage rising to 30% after Eid al-Fitr, stressing that all goods accumulated in the ports had been released..
During the foreign exchange shortage crisis in Egypt, the prices of iron and cars rose to unprecedented levels due to reliance on importing them from abroad, which prompted merchants and producers to price iron and cars at the price of the dollar in the parallel market, which reached levels of 70 pounds, before their prices declined over the past few days. For the first time in more than two years.
The head of the Building Materials Division at the General Federation of Chambers of Commerce, Ahmed El-Zeini, said that all iron companies have reduced their prices by 10,000 pounds ($210.96) per ton since the decision to apply a flexible exchange rate for the Egyptian pound against foreign currencies on March 6, bringing the price of a ton of iron down. From levels of 55-60 thousand pounds ($1,160.31-1,265.79) per ton for the consumer to between 40-46.5 thousand pounds ($834.86-980.99) per ton. A number of investment factories also reduced the price of a ton of iron to about 37 thousand pounds ($780.54)..
Ezz Steel Company, the largest iron and steel producer in the Egyptian market, reduced the price of a ton of iron from the level of 53.3 thousand pounds ($1,124.33) per ton delivered to the factory floor on March 1 to 46.5 thousand pounds ($980.99) per ton on Monday, March 25, according to the official website. For the company.
Al-Zaini believes, in exclusive statements to: CNN In Arabic, “The decline in iron prices is the result of two factors: the first is the decline in the price of the dollar against the pound from levels of 60-70 pounds in the parallel market to 47 pounds in the banks after the application of the exchange rate liberalization mechanism, and the second is the stagnation of sales in the building materials market after the unprecedented increase in prices, and anticipation Consumers will decline further in the coming period, but he linked the continued decline in iron prices to a further decline in the price of the dollar against the pound.”.
On March 6, the Central Bank of Egypt implemented a flexible exchange rate mechanism for the pound against foreign currencies after its agreement with the International Monetary Fund to complete economic reform measures, so the price of the dollar in official banks rose from the level of 30.8 pounds to more than 50 pounds, after which the price of the dollar fell over the course of two weeks. The last two days increased by more than 6%, at a value of 2.74 pounds, before it rose on Monday by a value of 80 piasters, bringing the average price of the dollar to 47.34 pounds to buy, 47.48 pounds to sell, at the Central Bank of Egypt..
Ahmed Al-Zeini stated that cement prices “stabilized without change because cement is entirely produced locally and is not significantly affected by changes in the exchange rate, in addition to the fact that there is a decrease in the production capacity of cement companies, and therefore the price of cement was not affected by the rise in the price of the pound against the dollar.”.
In July 2021, the Competition Protection and Monopolistic Practices Authority approved the cement companies’ request to reduce production capacity by at least more than 10% due to the increase in the volume of supply, for a period of one year, and the decision was extended twice to end next July..
The price of a ton of gray cement decreased to an average of 2,337.2 pounds ($49.31) per ton, a decline of 1.81%, with a value of 43.07 pounds ($0.91), according to data from the local price portal of the Council of Ministers..
In the same context, the head of the Automobile Dealers Association, Osama Abu Al-Majd, said that half the number of car dealers in Egypt reduced car prices during the past few days by rates ranging between 5-10% as a result of the decline in the price of the dollar, but this decline “did not affect the improvement in sales.” “Consumers anticipate further declines in prices in the coming period.”.
Abu Al-Majd added, in exclusive statements to: CNN In Arabic, foreign exchange flows during the last period from the first installment of the Ras El Hekma development deal, the waiver of dollar holders, as well as the release of 25,000 cars within the Egyptians Abroad Initiative “contributed to providing the necessary cash to open documentary credits to import cars, but this was not reflected in an increase in Large in the volume of supply,” he expected car prices to stabilize in the markets during the coming period, based on the fact that the rise in the price of the customs dollar compensated for the decline of the dollar against the pound..
Car sales in Egypt declined during January, recording 6.3 thousand units, a monthly decrease of 40%, which is the lowest sales level since April 2023, according to data from the Automotive Market Information Council (AMIC).“.
In a related context, the head of the Sugar and Candy Division of the Food Industries Chamber of the Federation of Egyptian Industries, Hassan Al-Fandi, said that the prices of sugar received from companies affiliated with the Ministry of Supply have been stable for two months at the level of 35 thousand pounds ($738.36) per ton, expecting continued price stability during the current period after… Government efforts to increase the volume of production and supply in the markets.
The government extended the decision to ban the export of sugar for an additional period of 3 months. It also intends to import one million tons of sugar during this year, with 300,000 tons being imported as a first stage to fill the deficit in the market and achieve price stability..
As Al-Fandi expected, in exclusive statements to CNN In Arabic, sugar prices will continue to decline during the coming period as a result of 3 reasons, which are, respectively, the start of the beet harvest season used in the sugar industry, adding that there are expectations for an increase in the size of the quantities planted this year and thus the size of the harvest, and the extension of the decision to ban the export of sugar for an additional 3 months, and the third factor. The government approved the urgent import of one million tons of sugar to increase the volume of supply in the markets, expecting that a ton of commercial sugar will continue to decline by 5 thousand pounds ($105.49) per ton during the coming period..
Local media reported that the price of free sugar delivery to the commercial sector increased to 32,000 pounds ($675.13) per ton, after which the share price of Delta Sugar Company, one of the government companies listed on the Egyptian Stock Exchange, rose by 11.4% to close at 69.13 pounds ($1.46). ).
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