04:04 PM
Wednesday 04 March 2020
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I wrote – Sherine Salah:
The prices of some electrical and electronic devices increased again in the Egyptian market, despite expectations of a decrease in the current year, due to the gains of the dollar’s decline against the pound, and the decrease in interest rates, thus reducing the cost of production and import.
But the spread of the new Corona virus, and its impact on the movement of trade and supplies of goods, in markets, including Egypt, has contributed to the shortage of supplies of some commodities and thus their prices.
This increase in prices, contrary to the expectations of importers, retailers and distribution companies, the price decline of about 5% during 2020.
In statements to Masrawy, traders attributed the return of prices to the increase rather than the decrease, to the lack of supply in the markets as a result of the stoppage of some factories and the reduction of work shifts in China, in addition to the accumulation of ports in Egypt with the containers of goods that were imported from China during the last period due to the lack of some papers related to the process Import due to the suspension of trade process in China.
China is the largest trading partner of Egypt and most of the world, due to the large volume of trade between China and the world.
Ashraf Hilal, head of the Electrical Devices Division of the Cairo Chamber of Commerce, and a member of the General Division for Importers, said that the prices of electrical appliances were expected to decline by about 5% during 2020 in light of the decline in the dollar since the beginning of the year until now.
Hilal added that the new Corona virus has helped to raise the prices of some devices on the market, such as television screens, refrigerators, and Deep Fraser.
The average price of some electrical devices on the market increased by about 300 pounds for television screens, and between 250 pounds and 300 pounds for refrigerators and deep fryers, according to traders told Masrawy during a tour of Abdel Aziz Street.
According to central bank data, the average dollar price in banks has decreased by 39 piasters, since the beginning of the year, recording 15.60 pounds for purchase and 15.70 pounds for sale, today, Wednesday.
But the dollar’s impact on prices will not be visible now, due to a shortage of supplies, Hilal said.
This was agreed with Mahmoud Khattab, Chairman and Managing Director of B-Tech for the distribution and sale of electrical and electronic devices, who said at a press conference last Monday that he expected prices to drop 5% in the current year, after falling by about 6 or 7% in half The second of last year, with the decline in demand and the weak purchasing power of citizens.
He added that the appearance of Corona will have negative repercussions on the economy and prices due to the damaged supply chains and fears of a shortage in the supply of some products.
The impact on prices extends to smartphones, which account for about half of the electrical and electronic devices market in Egypt.
Ahmad Abu Ouf, the head of the Chinese company, the operator of the Egyptian mobile operator Honer for mobile phones, told Masrawy previously that the prices of mobile phones will rise in Egypt if the crisis of Corona’s spread continues and affects the import of phones.
If the factories continue to stop operating during the next week, this will cause many phones to disappear from the market and the tendency of merchants to raise the prices of the products from which there is stock, said Abu Ouf.
According to a statement of the Importers Division last January, Egypt imports about 25 to 27% of its needs from China, with an estimated 15 or 16 billion dollars annually, and is considered one of the major countries supplying Egypt in all commercial and industrial activities and sectors.
According to the data of the Central Agency for Mobilization and Statistics, Egypt’s imports from China increased during the first 10 months of last year to 9.582 billion dollars, compared to 9.464 billion dollars during the same period of the previous year, an increase of 1.2%.
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