Two key Algeria’s steel producers have slowed down their production activities recently. The key reason for the output reduction is the government’s decree which urges companies, including heavy industry representatives, "to put in a position of exceptional paid leave at least 50 percent of their workforce, whose presence in the workplace is not considered essential for the continuity of service". The executive decree, being an official direction to the public in view of targets to curb the virus spread, became effective on March 22.
As a result, local producer Algerian Qatari Steel (AQS) has stopped its melting operations for now and decreased the utilization rate of its rolling mills to around 50 percent. The company’s crude steel production capacity is 1.2 million mt, while for long products it is 1.5 million mt for rebar and 500,000 mt for wire rod. According to its preliminary schedule, AQS plans to restore operations on April 4, SteelOrbis has learned.
Another large producer Tosyali Algerie, being a fully integrated company, has decided to maintain its production at around 50 percent of capacity, sources say. The company’s annual capacity is 3 million mt for rebar, 500,000 mt for wire rod and 400,000 mt for welded pipe. Total crude steel capacity is 3.8 million mt.