Egyptian steel producers have hiked prices for the local market by about five per cent, according to figures from the Central Bank of Egypt.

The increase in prices comes days before the market releases its rates for October, which are also expected to see a hike following the increase in the global price of billet.

The price hike also follows an increase to the tax on raw materials from five to 13 per cent and the newly introduced value-added-tax (VAT) on rebar, which rose from 7 to 13 per cent.

Local producer Ezz Steel, which controls more than half of Egypt’s steel market, increased its prices by 4.6 per cent to $707 per tonne since the beginning of September.

The increase of prices will be significant to Egypt’s construction market as contractors become more dependent on local products amid a foreign currency crisis.

A devaluation of the Egyptian pound earlier this year coupled with a shortage of foreign currency has meant foreign supplies have become either difficult or costly with local industries becoming increasingly important for the construction sector.