PROJECTS: Egyptian real estate sector worried about surge in construction material prices

PROJECTS: Egyptian real estate sector worried about surge in construction material prices

Construction material prices in Egypt are mirroring global trends as pandemic-induced supply chain bottlenecks have increased the prices of steel, copper, cement and aluminium over the past six months, industry stakeholders interviewed by Zawya Projects said. The rising cost of materials was flagged as the second biggest obstacle to construction activity after financial constraints by more than 70 percent of the Middle East and Africa respondents surveyed by RICS [Royal Institution of Chartered Surveyors] for its ' Steel rebar prices per tonne in Egypt increased by 1,000 Egyptian pounds ($64) in May due to the increase in the global prices of steel billets that local manufacturers import to process into rebars. Egypt produces about 7.9 million tonnes of rebar and 4.5 million tonnes of billet, while it imports 3.5 million tonnes of billet, according to the Chamber of . Ahmed Al-Zaini, Chairman of the Building Materials Division, Federation of Egyptian Chambers of Commerce (FEDCOC), said that the price of a tonne of rebar at reached 14,600 pounds ($933) while at , it increased to 14,500 pounds ($927), and at , the price increased to 14,050 pounds ($898). Globally, prices have hovered in the region of $700/tonne for steel billets and