Egyptian wood importers are between the hammer of the global market and the anvil of the domestic market.
The timber available in Egypt after importers accepted freight and wood prices in order to reduce the shortage of stock and push the wheels of work and factories that have already closed due to the shortage of raw wood.
The timber sector received another blow from the government, as the Egyptian government stopped selling lands within the new cities to individuals and only selling to real estate developers.
The high prices are putting pressure on the Egyptian manufacturers, who know that the final consumer will not be able to buy them even if they want to.
The low incomes and living costs of Egyptians became very high, and therefore most private projects were postponed for finishing or renovating.
Of course, we are talking about the low and middle income group, which represents 80% of consumers.
As for the remaining 20%, they searched for alternatives that were available in manufactured or precious wood, surfaces and gypsum board. Egypt already receives during this period more than 500,000 m3 imports, and the warehouses began to fill up.
But the level of sales was the opposite, as the demand for buying at high prices with good stock available in the importers’ stores is not an idea accepted by Egyptian merchants. Especially with the reasons mentioned above.
The pressure on the sizes required by real estate developers and in the government contracting sector is very high and has become acceptable even at high prices. As for the rest of the sizes, they are not purchased and represent a burden both in their storage and also in the value of the neglected capital.
Payments represent another nightmare for Egyptian wood importers as most real estate developers do not pay directly, but rather pay 90 days later.Importers cannot stop buying, but discussions with sawmills are open. Perhaps you will not get a price reduction, but the mills will not take more profits this time. Of course the picture is not very dark.
Sawmills insisted on mid-May prices
The average prices for RW VI grade was between 365 and 375 $ (for narrow and odd sizes ) and 390 you 425 $ for normal and special sizes CIF Alexandria Egypt. 7th between 290 $ and 350 $ ( based on origin )
Some mills requested higher prices than that, but the discussions reached this level of prices, especially in Finland and some small mills in Sweden.
It seems that the top of the price curve has stabilized.
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