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Egypt Forges Its Future: Rise to Africa's Steel Superpower

© OpenAI

The Egyptian steel industry has developed into a significant economic sector of the country in recent years (Source: OpenAI)

The Egyptian steel industry has developed into a significant economic sector of the country in recent years and today holds a leading position on the African continent. With an annual crude steel production of around 10 to 10.7 million tons in the years 2022 to 2024, Egypt has not only established itself as the frontrunner in Africa but now also ranks 19th among global steel producers, just behind France, Spain, and Canada. This impressive development reflects both the growing importance of the industry for the Egyptian economy and the considerable potential for further expansion.

© World Steel Association, International Manganese Institute, Handbook of World Steel Statistics

Egypt's steel production in thousand tons (Sources: World Steel Association, International Manganese Institute, Handbook of World Steel Statistics)

The Egyptian steel industry is dominated by a few large companies that together cover the majority of national production capacity. At the top stands Ezz Steel as the undisputed market leader with a capacity of about 7 million tons annually. The company has several strategically important production sites, including plants in Alexandria, Suez, and Sadat City, ensuring geographically distributed production and efficient supply to various regions.

As the second-largest player, Egyptian Steel Group has established itself with a market share of about 16 percent and annual production of around 1.7 million tons. The company focuses mainly on the production of rebar and wire rod, two product categories that are crucial for the construction industry. Besides these two main players, other companies such as Ezz El Dekheila, Beshay Steel, Kandil Steel, and NPSS complete the Egyptian steel landscape.

© Adobe Stock

The Egyptian steel industry is dominated by a few large companies that together cover the majority of national production capacity. (Source: Adobe Stock)

Production and Trade Dynamics

The production development of the Egyptian steel industry shows a clear upward trend. From January to September 2024, crude steel production could be increased by a remarkable 6 percent to 7.9 million tons, underlining the continued dynamism of the sector. This positive development is closely linked to rising domestic demand and the ambitious infrastructure projects of the Egyptian government.

In the area of international trade, the picture is mixed. While imports in 2024 recorded a significant decline of 34 percent compared to the previous year at 1.2 billion US dollars, exports reached a volume of 574 million US dollars. This development indicates increasing self-sufficiency and stronger orientation toward the domestic market. However, it's noteworthy that exports declined again in the following year after a strong increase in 2023, pointing to changing market conditions and international trade dynamics.

© Statisa

Growth of real GDP in Egypt from 1980-2024 and forecasts until 2030 (Source: Statista)

Infrastructure Boom as Growth Driver

A central driver for the growth of the Egyptian steel industry is the unprecedented infrastructure boom that the country is currently experiencing. This becomes particularly evident in the dramatic increase in rebar consumption. In April 2024, rebar consumption reached 579,300 tons, representing an impressive increase of 65 percent compared to the previous month and even 72 percent compared to April 2023. These figures illustrate the enormous dynamism in the construction sector and the associated demand for steel products.

The first half of 2024 confirmed this trend with a total consumption of over 3 million tons of rebar, corresponding to an increase of 9 percent compared to the same period of the previous year. This development is the direct result of massive state construction activities that include both residential construction, particularly social housing projects, and large-scale infrastructure projects.

Megaprojects and Urban Transformation

The Egyptian government has initiated a series of megaprojects that have significant impacts on steel demand. The most prominent example is the development of the Suez Canal Zone, which has been continuously expanded since 2014/15. This comprehensive project includes the creation of large-scale infrastructure for logistics, industry, and ports in Port Said, Ismailia, and Ain Sokhna, as well as the construction of tunnels, new cities, and specialized technology and industrial zones.

Another outstanding project is the creation of the New Administrative Capital east of Cairo. This ambitious urban development includes a central business district, government quarter, residential areas, and modern transport connections including Light Rail, Monorail, and high-speed trains. As a core project for steel construction, it requires substantial amounts of steel for high-rise buildings and infrastructure elements.

Furthermore, other planned cities such as New Mansoura, Al Galala City, and New Nasser City are in various stages of development. Each of these projects involves extensive infrastructure development as well as residential and industrial areas, all generating substantial steel demand.

The automotive industry is also developing into another important growth driver for the Egyptian steel industry. Despite the still relatively low car density of only 63 vehicles per 1,000 inhabitants in 2023, international automotive manufacturers recognize the enormous potential of the Egyptian market with its nearly 115 million inhabitants. Stellantis is already conducting talks with the Ministry of Trade and Industry about local assembly of its brands Citroen, Fiat, and Opel, while the company already produces the Jeep Grand Cherokee L in cooperation with Arab American Vehicles. Volkswagen signed a cooperation agreement with the Egyptian government in July 2024 to conduct a feasibility study for body and assembly halls in the East Port Said Automotive Zone. These developments in the automotive industry create a new source of demand for high-quality steel products, particularly for body panels and structural parts.

Parallel to this, the massive expansion of railway infrastructure opens additional perspectives for the steel industry. Egypt plans comprehensive investments in an over 1,800-kilometer high-speed network in the coming years, making the country the most dynamic railway market on the African continent. voestalpine Railway Systems already agreed in July 2022 on a joint venture with Egyptian State Railways for the joint production of high-performance switches in the existing switch plant in Cairo. This project not only underlines the attractiveness of Egypt as a production location but also demonstrates the importance of local steel processing for the ambitious railway projects. The combination of high-speed lines, urban rail systems, and conventional railway connections will require substantial quantities of rails, switches, and other steel-intensive components.

Strategic Orientation and Industrial Policy

The Egyptian government pursues a clear strategic vision for the steel industry that goes far beyond mere production increases. According to Prime Minister Mustafa Madbuli, the steel industry serves as an important locational advantage to save foreign currency, promote exports, and reduce import dependence. At the same time, it should serve as a basis for developing a regional export hub.

A particular focus is on promoting environmentally friendly production methods. Modern plants for CO₂ reduction are actively supported, and green steel production receives clear political backing. These efforts are reinforced through intensive political discussions with international actors and the development of corresponding cooperations.

© Adobe Stock

Container ship (Source: Adobe Stock)

Current US trade policy under President Trump has significant impacts on the global steel market and thus also on Egypt's export opportunities. The US has increased its steel tariffs from originally 25 percent to 50 percent, significantly hampering access to the American market for Egyptian steel exporters. These tariffs have applied to all countries since March 2025, intensifying the competitive environment for Egyptian steel producers. At the same time, however, this also opens opportunities in other markets, as trade flows are redirected and alternative sales markets can gain importance.

Parallel to this, the European Union is developing its own trade policy in the steel sector, which brings both challenges and opportunities for Egypt. The EU's Carbon Border Adjustment Mechanism (CBAM) is currently in a transition phase from 2023 to 2025 and will be fully implemented from 2026. This instrument aims to consider carbon costs in imports and thus protect European producers from unfair competition by countries with less stringent climate regulations. CBAM affects importers of carbon-intensive goods such as steel, aluminum, cement, and fertilizers. For Egypt, this means that investments in green steel technologies are not only sensible for environmental policy reasons but can also secure access to the lucrative European market. Timely conversion to climate-friendly production methods could give Egyptian steel producers a competitive advantage over competitors from countries that neglect this transformation.

Challenges and Modernization Needs

Despite positive developments, the Egyptian steel industry faces considerable challenges. A central problem is outdated production facilities, as many plants still operate with traditional, energy-intensive processes. Modernization toward green steel is partially still in the planning phase and is not implemented across the board.

The investment requirement for modern technologies is considerable. Green steel, hydrogen-based processes, and capture technologies require substantial financial resources. Although projects for carbon capture and green hydrogen have already been initiated in the Suez Zone, these are still relatively small-scale compared to the entire steel sector.

Competitive Pressure and Market Dynamics

Moreover, the Egyptian steel industry faces intense competitive pressure from cheap steel imports, particularly rebar from Turkey, China, and Ukraine. These imports depress prices and undermine the competitiveness of local manufacturers. Although rebar prices rose at the end of 2024, market equilibrium remained weak. In the first quarter of 2025, both consumption and production reduced while overcapacities persisted.

In response to these challenges, the Egyptian government has introduced tariffs and protectionist measures against steel imports. These measures to protect the domestic industry, however, simultaneously burden international trade relations and can lead to trade conflicts in the long term.

Future Perspectives and Development Potential

The prospects for the Egyptian steel industry remain positive despite the mentioned challenges. After reaching 9.8 million tons of crude steel production in 2023, continuous growth of about 1 to 1.5 percent annually is projected for the period 2025 to 2030. This capacity expansion is based on continued strong domestic demand and planned infrastructure investments.

© Adobe Stock

Biofuel Factory (Source: Adobe Stock)

The development in the area of green steel is particularly promising. Cooperations with international partners such as Xinfeng Steel, the implementation of new environmentally friendly plants, and the introduction of sustainable production technologies position Egypt as a potential pioneer for sustainable steel production in the region.

Conclusion

The Egyptian steel industry is in a phase of dynamic growth, supported by robust domestic demand and ambitious government initiatives. The leading position in Africa is based on strong companies like Ezz Steel and Egyptian Steel Group, which continuously expand and modernize their capacities. While challenges such as modernizing outdated plants, international competition, and the need for export diversification remain, significant opportunities arise simultaneously through green production technologies and strategic positioning as a regional hub. Successfully managing these challenges will be crucial for whether Egypt can substantiate its ambitions as a leading steel nation not only of Africa but also of the entire Middle East.

Learn more about steel production and markets in Egypt at the next wire & Tube, taking place from April 13-17, 2026, in Düsseldorf. Current industry and product information is available on the internet portal at www.wire.de.

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