The geographical location supports Egyptian exports in light of the confusion of the global shipping movement

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Khattab: Good demand from different regions of the world

The demand for Egyptian products from neighboring countries and separate regions of the world has increased, and it is still enhancing gains from the jumps in international freight rates and the shortage of containers, taking advantage of Egypt’s geographical location, which is in the middle of the world map, even in light of the rising prices of raw materials globally.

Recent weeks have witnessed an exacerbation of the crisis of rising freight prices globally in light of the negative repercussions resulting from the Corona pandemic, and it is expected that the global shortage of containers will worsen, due to supply chain disruptions from epidemic closures and the unexpectedly rapid recovery in demand.

Engineer Mohamed Khattab, Undersecretary of the Export Council for Building Materials, Refractories and Metal Industries, said that the rise in commodity prices globally in light of the increase in the cost of raw materials and the lack of global supply of containers, which strengthened the position of the Egyptian producer in neighboring countries and contributed to the demand of new countries for it.

He pointed to the high demand from African countries, Europe, Arab countries and Russia countries, taking advantage of Egypt’s geographical location.

He added that these gains came with the decline in China’s imports to many countries during the recent period, and freight rates have doubled several times.

Hazem Bishr, a member of the Export Council for Chemical Industries and Fertilizers, said that despite the rise in raw materials prices globally, exports are still reaping gains in North African and African countries, Mercosur countries and various markets that have trade agreements with Egypt to be an alternative to the Chinese product.

He pointed out that the rise in raw materials prices globally did not negatively affect exports, but it did cause a contraction in domestic demand for glass tableware as a result of the decline in purchasing power.

He referred to successive increases in the prices of raw materials (soda ash) used in the glass industry, as well as the jumps in the prices of paper used in product packaging.

 

Al-Zenouki: Morocco and the Levant countries focus on household utensils

Mahmoud El-Zenouki, Deputy Director General of El-Zenouki Company for Household Utensils, said that export demand has increased during the current period from North African countries, Palestine, Jordan and Lebanon, as a result of the decline in imports of these countries from China with the increase in freight prices.

He added that the cost of shipping a container from China to North Africa has more than doubled since the outbreak of the Corona virus, and the cost of a container has risen from $600 to about $10,000.

He explained that the Egyptian and Turkish product is currently the alternative to the Chinese product, and the Egyptian product’s shares of household utensils have increased significantly in Morocco and the Levant.

He said that the increase in the prices of raw materials such as aluminum, stainless steel and packaging materials contributed to a 30% increase in the prices of products, which negatively affected the volume of domestic demand.

He mentioned that the lack of containers on a regular basis made the company to contract for quantities of raw materials on a regular basis to secure its share so as not to cause a halt in production.

He ruled out the idea of ​​contracting huge quantities of raw materials to secure their shares in light of the poor liquidity to achieve this, and these materials required huge storage spaces.

Engineer Samir Noaman, Vice-President of the Export Council for Building Materials and Metal Industries, said that Egypt’s location contributed greatly to its benefit during the current period from the increase in exports and the reaping of profits from the increases in freight rates.

 

“Bishr”: An increase in exports and a contraction in domestic sales

He pointed out that there is an increasing demand for most of the council’s items during the current period, and some of them have reached record levels, such as iron and cement, and the demand for them has jumped by African countries, various other countries in Europe, Arab countries and some countries from East Asia.

With regard to the increases in raw materials prices and their impact on the manufacturing movement, he pointed out that as long as the increase is global and not limited to the local market, it will not negatively affect external demand, which appeared in the noticeable rise in iron, aluminum and copper exports.

The article’s geographical location supports Egyptian exports in light of the confusion of global shipping traffic. It was written in Al Borsa newspaper.