The domestic rebar demand in Egypt was hit by several negative factors in May resulting in the lowest monthly consumption rate in 10 years, according to local media reports. 

 

In May, Egypt consumed 312,000mt of rebar, down 35pc compared to the same period last year and 31pc compared to the previous month. In April, 452,800mt of rebar was consumed.

 

The negative factors include banning of construction licenses and challenges with cash flow among other vigorous factors, according to Davis Index sources.

 

The suppressed domestic consumption has a negative impact on mills’ production capacities. The average utilization rate is estimated at 40pc. If the demand situation does not recover, market participants expect the total rebar consumption in 2020 to drop to 6mn mt from 7.4mn mt in 2019.

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