Egypt-based company Ezz Steel’s flat steel production decreased by 19pc to 8,88,000mt in Jan-Sep 2019 period, from 1.1mn mt in the prior year period, according to the company’s consolidated results for the nine-month period ending Sept 30, 2019. 

 

Sales volumes for flat steel declined by 17pc to 8,13,000mt and exports volumes decreased by 9pc to 4,09,000mt, from 5,03,000mt in Jan-Sep 2018. The company posted negative top-line numbers, with a 6pc decline in net sales, at EGP35.3bn ($2,201mn). 

 

A drop in prices of finished steel products in both the domestic and international markets, a spike in iron ore prices and erratic availability of iron ore direct reduction pellets led to the drop in the steel production. 

 

In the Jan-Sep 2019 period, local sales volumes for Ezz Steel increased by 6 per cent; however, export markets decreased by 16pc. Long steel products accounted for EGP 26.8bn or 77pc of sales in the Jan-Sep 2019 period, while flat steel products represented 23pc of sales at EGP8bn. Long product exports accounted for 6pc of total long sales. Flat product exports accounted for 50pc of total flat sales.

 

Long sales volumes, which contribute about three quarters of Ezz Steel’s total revenue, were 2.66 mn mt during Jan-Sep 2019, 9pc higher than the 2.44 mn mt sold during the same period last year. 

 

 In the local market, long sales volumes were up 11pc. However, the export market showed a relative decline and was down 8 pc compared to prior year. Long steel production volumes totalled 2.5mn mt, 1pc up compared to Jan-Sep 2018. 

 

Ezz Steel is the largest independent steel producer in the Middle East and North Africa (MENA) region with a total actual capacity of 7mn mt of finished steel per year.

 

 

 

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