Egypt Watch

Egypt: Shortage of medicine and decrease in oil prices due to coronavirus

Several medical manufacturers in Egypt have said that they are suffering a shortage in raw materials imported from China as coronavirus has affected trade, which may prevent them from providing medicine in the coming period. Hany Mashaal, chairman of Sun Pharma Pharmaceutical Company, told Alborsa newspaper that Egyptian companies import most of their raw materials from China. He expected that the crisis will lead to higher price of medicine and the shortage will push Egyptian manufacturers to turn to India, which is considered the second biggest supplier of raw materials in the industry, and prices will be pushed up.

Manufacturers of vegetable oil have said that their prices decreased in the last weeks as a result of the decrease in the international stock markets, which is affected by the decrease of demand due to the commercial slowdown. Prices of palm oil have decreased since the beginning of the year by 14 per cent and soy oil by 22 per cent. Hazem al-Shazly, general manager of Al-Hamed Company for oil extraction, said that low prices cost local manufacturers losses of EGP 1,250 ($80) on a ton of stock.