Egypt’s cement producers will lower manufacturing for 12 months from 15 July to scale back the oversupply that has plagued the business for the previous three years.
Choice 56 of 2021 was introduced on 5 July by the Competitors Safety Authority with the backing of the Industrial Improvement Authority.
The 23-member Cement Affiliation of the Egyptian Federation of Industries welcomed the choice, noting that it might ‘protect the plurality of the market, the cement business, its jobs, and the pursuits of the patron.’
Final week, Reuters reported that the competitors authority has set the baseline cut at 10.69 p.c, with further cuts of two.81 p.c for every manufacturing line and additional cuts relying on the corporate’s age.
Ahmed Al-Zaini, Chairman of the Constructing Supplies Division, Federation of Egyptian Chambers of Commerce (FEDCOC), stated cement costs elevated within the vary of fifty to 100 kilos within the days following the announcement of the choice.
He stated at current, the typical value of a tonne of cement delivered to the manufacturing unit ranges between 725 and 850 kilos, and to the patron ranges between 900 and 1,000 kilos.
Egypt’s complete annual cement manufacturing is between 85 to 87 million towards consumption of 47 to 50 million tonnes per 12 months, based on the Chamber of Cement Business of the Federation of Egyptian Industries.
(Writing by Eman Hamed; Modifying by Anoop Menon)
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