Egypt EGPC to stay out of bitumen market in 2024

EGPC is traditionally a key regional buyer, having imported around 360,000t to its Alexandria terminal in 2022, according to Vortexa. Its absence in 2023 was keenly felt, especially in the east Mediterranean market and among Greek and Turkish exporters.

Egypt's economic and currency woes forced it to cancel a previously awarded January 2023 buy tender, and that signalled a halt to its buying programme. The country's financial problems have shown no signs of abating, with the Egyptian pound's value against the US dollar around half of what it was before March 2022.

Some measures are being taken to help remedy the situation. The Central Bank of Egypt said on 31 December it had auctioned $850mn in denominated treasury bills in a bid to overcome a shortage of dollars, and the government has started selling state assets, including army-owned firms, to Mideast Gulf nations. The latter is a key demand of the IMF, from which Egypt has been seeking a $3bn loan agreement in recent months.

Trading and supply firms that have traditionally supplied EGPC under monthly and quarterly tenders were unsurprised but also concerned by the negative market affect of the firm's decision to stay out of the market for another year. Some received recent indications that there would be no resumption of tenders for several months at least.