Ezz Steel, the largest steel producer in Egypt, has cut its production in the last couple of months due to weak demand.
The producer's output in 2007 was approximately 4.9 million mt. According to George Matta, chief marketing officer of Ezz, there were around 1.82 million mt of rebar inventories in the Gulf region in September, while the figure has now fallen to just below 1 million mt.
"Prices for steel and scrap have dropped to levels not seen since 2004. Like everybody else we are adjusting our production to the new demand reality. Our export business has been affected, so we are producing less than normal," said Mr. Matta. However, he did not give an exact percentage for the company's production cut.