Pre-Trading Thoughts

Al Ahly Pharos

The Oil Ministry is studying the possibility of leasing another floating storage regasification unit (FSRU) in Ain Sokhna to meet the need for additional quantities of natural gas.

The Oil Ministry aims to drill 110 exploratory wells for gas and oil, with a total investment of USD1.2 billion during FY 2024/25. It is also planning to drill 586 exploratory wells for gas and oil, with a total investment of USD7.2 billion until 2030.

EGPC contracted to import fuel shipments of diesel and butane in quantities approaching 550k tons to be delivered this month, a government official said, adding that the contracted diesel shipments amount to about 380k tons to meet the market's needs.

The General Authority for Investment and Free Zones (GAFI) has requested the New Urban Communities Authority (NUCA) to allocate plots of land for the establishment of three new investment zones.

China’s Zhejiang Hengsheng Dyeing and Finishing Company has laid the foundation stone for its dyeing, processing, and textile manufacturing project in the Suez Canal Economic Zone’s West Qantara Industrial Zone, with investments amounting to USD 70 mn.

Minister Moustafa Madbouly issued a directive forming the Economic Ministerial Group. Headed by Madbouly, the group will include Central Bank Governor Hassan Abdalla, Planning and Economic Development Minister Rania Al Mashat, Finance Minister Ahmed Kouchouk — who will serve as the group’s spokesperson — Supply Minister Sherif Farouk, and Investment and Foreign Trade Minister Hassan El Khatib.

Gold production was up nearly 16.5% y-o-y to 559k oz in the last fiscal year.

The government intends to expand the “golden license” system, to be available for the first time to large projects working in agricultural exports, alongside their industrial counterparts.

The European Bank for Reconstruction and Development (EBRD) plans to provide financing worth USD705 million into a number of Egyptian banks during 2H2024.

The Egyptian Stock Exchange issued rules for trading carbon emissions reduction certificates and futures contracts for the first time.

EAST raised prices of its first segment by EGP0.22, bringing the pack price to EGP34.72, which corresponds to the maximum price limit set for this segment.

HELI (FV: EGP18.84, OW) and MASR (FV: EGP5.24, OW) signed the contract to co-develop HELI’s 491 feddan land plot in New Heliopolis.

SWDY (FV: EGP44.88, EW) announced that its sister company, El Sewedy Cables Qatar, has signed an EPC contract with KAHRAMAA Qatar Power Transmission System Expansion to supply and install 132kV power cables for Strategic Projects over three years with a value exceeding QAR1 billion (c. USD270 million).

A number of cement companies have addressed the Egyptian Competition Authority to request an extension of the decision to reduce production for an additional year, with the aim of helping companies deal with the shrinking demand in light of the decline in individual construction activities.

ACDIMA revealed that EIPICO 3 operations are expected to commence by the end of this year with investments reaching EGP5 billion post devaluation (compared to a previous estimate of EGP2.7 billion). Fifteen molecules have been registered so far.
Weekly Commodities Update

Last Price | WoW Change, %
Brent, USD/bbl | 85.0 | -1.7%
Diesel-HSFO Spread, USD/ton | 287.1 | -4.1%
Egypt Urea, USD/ton | 337.5 | 0.0%
Polyethylene, USD/ton | 1,060.0 | 1.0%
Polypropylene, USD/ton | 1,000.0 | 0.5%
Iron Ore 65%, USD/ton | 127.3 | -1.3%
Steel/Iron Ore Spreads, USD/ton | 386.5 | 0.0%
LME Aluminum Cash Price, USD/ton | 2,415.9 | -2.5%
Eyptian Retail Cement, EGP/ton | 2,132.0 | 0.9%
Steam Coal FOB Newcastle Australia, USD/ton | 133.9 | -1.4%
SMP, USD/MT | 2,586.0 | 0.0%