SteelOrbis has been told that Egyptian steelmaker EZDK will declare force majeure to all its contracted companies for at least 60 days. There are also reports that indicate a 90-day period in this framework.
It is reported that production activity at the mill stopped on June 24, on account of a technical problem affecting the flats production line.
The date for the resumption of production operations has not yet been clarified.
As EZDK's production operations remain halted, EFS, the group's production facility in Suez, is reported to be carrying the extra burden of supply to the domestic market. This situation is expected to impact hot rolled coil requirements, particularly on the export side.
SteelOrbis has not been able to reach EZDK officals for a comment on the issue. An e-mail request by SteelOrbis has not yet been returned by the company authorities.