The Egyptian Commodities Exchange (EGYCOMEX) is planning to list new petroleum products on its platform, with a focus on nitrogen and phosphate fertilizers, according to a high-ranking source at EGYCOMEX.
The source said that EGYCOMEX will begin with listing nitrogen fertilizers, which are widely used in Egypt and need price regulation. The source added that the listing is expected to take place before the end of 2023 or early 2024, depending on the success of the experiment.
The source also said that phosphate fertilizers will be listed at a later stage, after evaluating the performance of nitrogen fertilizers on the platform.
This comes after Tarek El Molla, Minister of Petroleum and Mineral Resources, met with Ahmed El Sheikh, Chairperson of the Egyptian Exchange (EGX), and Ibrahim Ashmawy, Chairperson of EGYCOMEX, last Sunday to discuss the possibility of listing and trading some special products of petroleum companies on EGYCOMEX’s platform, according to a press release from the Ministry.
The press release stated that El Molla received a detailed explanation of how EGYCOMEX works and how it can help in pricing products based on supply and demand, as well as increasing liquidity and transparency in the market.
El Molla stressed the importance of cooperation between the Ministry and EGYCOMEX to list several products as soon as possible, as a first step towards benefiting all parties involved.
El Sheikh said that having organized markets for securities and commodities helps enhance transparency by applying clear rules and procedures that are known to all parties. He also said that successful trading markets are characterized by high liquidity and investment rates, as well as a variety of products that attract local and foreign commercial and investment institutions.
Ashmawy expressed his readiness to provide all kinds of support for the success of listing and trading private petroleum products on EGYCOMEX’s platform. He also said that EGYCOMEX is prepared to offer training on trading and settlement systems.
