Despite experiencing a 50% increase in sales, Ezz Steel incurred a loss of EGP 2.5 billion in the first quarter of 2023, primarily attributable to the adverse impact of the exchange rate difference.
Ezz Steel stated that during the fourth quarter of the previous year, it implemented a gradual increase in re-exports to fulfill its raw material imports and ensure an adequate foreign exchange supply. Ezz Steel announced foreign exchange losses amounting to EGP 8.9 billion in the first quarter. However, with the subsequent increase in sales, this loss was reduced to EGP 2.5 billion.
Recently, Egypt has been facing ongoing challenges related to exchange rate fluctuations and instability. Amidst the current circumstances, several iron and steel manufacturing companies have opted to restrict their production, while others have even halted their production altogether.
Since the start of 2023, the Egyptian pound has experienced a depreciation of approximately 25% against the US dollar. Since the onset of the Russian-Ukrainian war in March 2022, the conflict has tragically resulted in a significant number of casualties, amounting to approximately 95% of the total.
Ezz Steel, holding the largest market share in Egypt's rebar industry, has witnessed a substantial increase in rebar prices over the course of one year, with a significant rise of 93.6%. In March 2022, the ton price of rebar stood at 19.7 thousand EGP, but it has surged to 38.2 thousand EGP in March of this year, reflecting a notable increase.
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