Freight and raw materials prices have spiked significantly, according to Matta Beshay, member of the Importers Division at the Federation of Egyptian Chambers of Commerce (FEDCOC).
Beshay also said that a hike in final product prices is expected in the short-term. He noted that shipping prices from China increased from $1,450 and $2,000 per container to $8,000 per container.
He added that the dates of container arrivals at ports have recently been significantly delayed, whether related to goods imported from China or the European Union (EU).
EU goods used to arrive in Egyptian ports within a maximum of four to six days, but have now been significantly delayed to an average of 20-25 days. The same goes for goods imported from Asia, namely China and India, with the average arrival time now taking about 60 days, instead of the previous 20-30 days.
“Foreign companies sent emails to Egyptian importers informing them of a global price hike in raw material prices, therefore they are forced to increase prices,” he said.
Beshay also said that many raw materials have experienced significant increases, such as: Polypropylene from $1,100 to $1,700/tonne; PVC from $800 to $1,800/tonne; and ABS from $1,500 to $3,500/tonne.
Moreover, iron prices have spiked from $450 to $750/tonne, copper from $3,850 to $6,450/tonne, and stainless steel from $2,500 to $3,200/tonne.
Prices of all imported goods are set to increase by 25%-30% in the beginning of 2021, Beshay noted, pointing out that countries have concerns about increasing their export rates with the upsurge of various costs.