Cement companies in Egypt have agreed to reduce production to prevent stock accumulation due to a decline in domestic demand caused by coronavirus construction curbs, the local press reported on Wednesday. 

The Competition Protection Authority in the most populated Arab country has approved the cut by 23 cement plants, Addustour and other Egyptian papers said. 

“The decision by those companies is intended to limit the impact of the market crisis caused by the spread of Coronavirus,” the Authority said in a statement. 

“The agreement is for a limited period of time, and it follows the adverse circumstances in which Egypt passed through, including a slowdown in the construction industry that led to a decline in demand for Portland cement.” 

Newspapers did not mention the size of reduction agreed by those firms but said the decision has caused a “state of anxiety” in the market due to expectations that it would push cement prices by 50-100 pounds ($3.2-6.4) this month. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021