Egypt Makes LC Mandatory For Ferro Alloys Importers From March

Egypt has decided to escalate the use of letters of credit (LC) instead of the ‘cash against documents’ mechanism for imports of ferro alloys from Mar’22. A major concern for buyers is the limited possibility for trade under such rules as they will have to pay 100% in advance and blocking funds for months won’t be possible in an organised market. The bigger mills stand to benefit but the smaller ones will be affected.