Reuters reported that Egypt's largest steelmaker Ezz Steel has cut output at its plants by around 20% for flat steel since the start of 2009.

Mr Ahmed Ezz MD of Ezz Steel said that Global steel demand has slumped since mid 2008, as the economic slowdown cooled consumption in the automotive and construction sectors. Slower demand has forced steelmakers to slash production and halt investment plans. Global crude steel production fell 22% in February versus the same period last year, with the biggest casualties being North America with a fall of 53% and the EU with 43%. The Middle East is the only region which recorded growth in February.

He said that Ezz' total output was expected to drop about 12.5% to 4.5 million to 4.6 million tonnes this year from 5.2 million tonnes in 2008.

Mr Ezz said that "We are marginally cutting down our production this year to meet the fall in demand. But we are expecting by the Q3 of 2009, that there will be a slight recovery in demand."

Steel demand in Egypt has been relatively healthy due to expanding demand for housing and the limited exposure of the country's banks to toxic assets.

(Sourced from Reuters)