Egypt's largest steelmaker Ezz Steel has announced its financial results for the first half of the current year, reporting a net profit of EGP 302 million ($43.8 million), compared to a net profit of EGP 82 million in the corresponding period of the previous year. The company's sales revenues in the first half this year amounted to EGP 11.14 billion ($1.6 billion), increasing by eight percent year on year, due to higher sales volumes for both longs and flats, as well as higher realized selling prices.
According to Ezz Steel's statement, in the first half this year long product prices increased by six percent year on year in the local market, while export prices fell by four percent. On the other hand, in the period in question flat product prices increased by four percent year on year in the local market, while export prices increased by seven percent, reflecting the increased confidence in international steel markets.
During the first six months, Ezz Steel's sales, in terms of volume, reached 2.5 million mt, rising three percent compared to the same period of the previous year. In the given period, Ezz Steel's long steel production volume amounted to 2 million mt, down five percent year on year, while its flat steel production volume increased by seven percent year on year to 504,583 mt.
According to Ezz Steel, the Egyptian market continues to see robust local market demand for long products in particular, underpinned by local house building activity. The progress being made on Ezz Steel's DRI plant is encouraging and, once completed, it will significantly increase vertical integration and operational efficiency, resulting in higher margins.