Egypt PMI drops to 21-month low in March, to 46.5, down from 48.1 in February. Activity and new orders decline sharply as demand stutters. Ukraine war and pound devaluation drive input prices higher. Business confidence falls to record low amid inflation fears. 

Saudi Arabia’s sovereign wealth fund could take stakes in military-owned Wataniya Petroleum and the three Siemens-built power plants as part of its proposed USD 10 bn investment in Egypt. 

The Ministries of Finance, Trade and Industry to prepare a list of the most important production inputs and imported products for which the customs tariff needs to be reduced or raised, to encourage import substitution. 

Prime Minister confirmed that the government will work with the Central Bank to facilitate procedures for importing production requirements.

CBE issued EGP750 mn worth of five-year t-bonds yesterday, with an average yield of 14.22%.

National Railways Authority has completed the first draft for the indicative agreement with private sector investors in the management and operation of railway system. 

Russia might lift restrictions on flights to 52 countries including Egypt early next week.

EFID BoD agreed on raising Edita Morocco’s paid in capital to MAD100 mn, and on buying a new cake line from Edita Egypt.

El Nasr Automotive will sign next week with an unnamed Chinese company to locally assemble electric vehicles (EVs); Government is in talks with a private-sector firm to assemble the vehicles alongside El Nasr.

Weekly Commodities Update

Brent futures are trading at USD108.75/bbl and averaged USD98.12/bbl YTD

Egypt Urea Index was unchanged WoW at USD1,130/ton

Polyethylene (HDPE) prices were unchanged WoW at USD1,560/ton

Diesel-HSFO spreads were down 21% WoW to USD485/ton

Polypropylene prices stood still WoW at  USD1,330/MT

Steel/Iron Ore spreads were also stable USD620/ton compared to last week

Fwd Aluminum prices dropped by 4% to stand at USD3,450/ton 

Retail cement prices in Egypt were stable at last week’s range of EGP1,350 -1,450 per ton

Coal prices dropped 21% WoW to record USD259/ton

Crude palm oil prices dropped 4% WoW to reach USD1,430MT