Industry sector stocks, including those of the Egypt Aluminium Company (Egyptalum) and Ezz Steel, rose during Monday’s trading session following industry lobbying for a cut in electricity and natural gas prices.
Industry sources told Daily News Egypt that companies, including Egyptalum, continue to push hard for a further lowering of electricity prices from the current $0.06/kwh or EGP 1.0/kwh, to $0.04/kwh.
Industry associations are also lobbying for a reduction in natural gas prices, from $4.5/mmbtu to $3.5/mmtbu.
In March, the Cabinet reduced electricity and natural gas prices to EGP 1.0/kwh, down from EGP 1.1/kwh, and $4.5/mmbtu from $5.5/mmbtu, respectively. The government move aimed to provide some relief for producers.
With energy costs borne by the country’s heavy industry users still high, leading to consistent losses, it remains to be seen if the government will provide further relief for producers.
Over the last two trading sessions, shares for the Egyptian Iron and Steel (Hadisolb) have risen by 27%, accompanied by strong volumes. Hadisolb’s significant surge in stock price comes on the back of news that its state-owned parent company, the Metallurgical Industries Holding Company (MIH), has signed a partnership agreement with Ukraine-based company, Fash Mash. The partnership seeks to boost iron content at the iron ore mine in Bahariya Oasis through dry magnetic separation.
