Steel Industry News

Egypt’s Steel Industry Seeks Development Opportunities

Government Commitment and Industry Growth

Ahmed Samir, Egypt’s Minister of Trade and Industry, recently met with representatives from 137 international steel companies at Suez Steel’s headquarters to discuss investment in the Egyptian steel sector. He emphasized the industry’s crucial role in Egypt’s economic development. In 2023, Egypt produced 9.8 million tons of crude steel, solidifying its leadership in Africa. The government plans to prioritize the industry’s development and focus on export opportunities driven by global infrastructure projects. Additionally, economic growth in Africa has increased local demand for high-quality steel.

Challenges and Innovations

However, the European Union’s Carbon Border Adjustment Mechanism (CBAM) poses challenges to Egypt’s steel exports. To stay competitive, Egypt must transition to low-carbon steel production. The Ministry of Trade and Industry is supporting local manufacturers in adopting cleaner production methods. Collaborations with research institutions and technology providers are exploring low-carbon options like electric arc furnaces and green hydrogen. Simplified export procedures, favorable trade agreements, and financing mechanisms will enhance the competitiveness of Egyptian steel exporters. Investments in research and development, including green steel production and resource-saving technologies, will further strengthen the industry’s growth.

Italian Steel Market Dynamics

Price Increases and Supply Shortages

Recently, European steelmakers have faced supply shortages due to strikes at some mills, leading to an increase in Italian plate prices. The ex-factory price for September delivery is currently 2,900 to 2,950 euros per ton (about 3,112.86 to 3,167.12 US dollars per ton). Despite weak downstream demand, oversupply issues and sluggish demand for steel pipes have prompted processors to raise prices by about 100 euros per ton (about 107.35 US dollars per ton).

Delivery Delays and Market Tension

Steel mills in Europe are experiencing delivery delays. Ships transporting steel are avoiding the Red Sea due to piracy, opting for longer routes to southern Europe. This has delayed the arrival of imported cold-rolled and hot-rolled coils. A major coil buyer reported that the European steel supply chain is complicated, with shipments from Asia in June likely arriving in August.

Market Impact

While mill prices are rising, the rate of increase in distribution prices is slowing. In the first quarter, Italy’s value chain suffered financial losses, impacting service centers and steel processors. According to the Italian Steel Trade Association (Assofermet), the Italian market remains tense due to stable user demand amid supply shortages. Ongoing strikes, delayed deliveries, and limited imports have contributed to the shortage. Steel stocks in Italy are below average, and scrap prices are expected to rise due to limited supply.