Egypt's largest steelmaker Ezz Steel has cut output at its plants by around 20 percent for flat steel since the start of 2009, the company's managing director said on Monday.Global steel demand has slumped since mid-2008, as the economic slowdown cooled consumption in the automotive and construction sectors. Slower demand has forced steelmakers to slash production and halt investment plans.Global crude steel production fell 22 percent in February versus the same period last year, with the biggest casualties being North America with a fall of 53 percent and the EU with 43 percent. The Middle East is the only region which recorded growth in February.Ezz' total output was expected to drop about 12.5 percent to 4.5 million to 4.6 million tonnes this year from 5.2 million tonnes in 2008, Ahmed Ezz told Reuters."We are marginally cutting down our production this year to meet the fall in demand," he said. "But we are expecting by the third-quarter of 2009, that there will be a slight recovery in demand." Steel demand in Egypt has been relatively healthy due to expanding demand for housing and the limited exposure of the country's banks to toxic assets.A drop in global demand for steel has weighed heavily on steel prices, which have extended losses since January. The slump has forced extended output cuts, plant shutdowns and staff layoffs.The price of a billet, a long form of steel used mainly in construction has fallen off its peak of $1,200 a tonne last year, to around $300 a tonne in mid-March.Morgan Stanley earlier this month revised down its global price forecast for flat steel to $502 down $117 from previously. .