Spotlight on the African steel and metal industry

As Africa emerges as a key player in the global business landscape, its pivotal role in supplying raw materials and minerals becomes increasingly evident. Several significant developments are underway, with major acquisitions, the establishment of new steel mills, and discussions about green steel in a continent that has historically been the object of contention from its neighbors and is now striving for greater independence. In this dynamic environment, our dedicated expometals team has curated a selection of noteworthy news, keeping industry players well-informed and ahead of the curve in this rapidly evolving sector.

200,000-ton steel plant just inaugurated in Algeria
As reported by various local news sources, Algeria has recently completed the construction of a 200,000-ton steel plant as part of a strategic plan to reduce metal imports. Ali Aoun, the Algerian Industry Minister, has just inaugurated the facility in the northeastern province of Touggourt. The plant will mainly manufacture rebar and steel wire, generating 300 job opportunities. The project’s main objective is to reduce the country’s imports and meet the demand of six provinces.

A colossal flat steel industrial complex in Egypt is on the horizon
According to a recent article published by The Egyptian Cabinet on its official website, Egypt is embarking on a monumental project to establish an integrated industrial complex for flat steel production, partnering with an international company and investing USD 1 billion. The initiative, set within special economic zones and covering 1.5 million square meters, aims to enhance local manufacturing capabilities and expand exports. It will be executed in two phases and will have an estimated production capacity of 1.8 million tons. The project is expected to begin production within 18 to 24 months post-approval and will create 6,500 jobs - both direct and indirect - supporting Egypt's goal to become a key player in the global steel industry.

The “green steel ecosystem” potential in the East African Community
A recent report released by the Commonwealth Secretariat has shed light on the promising prospects of the East African Community (EAC - now comprising the 7 Partner States Burundi, Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda) in creating a 'green steel ecosystem' with a billion-dollar potential. The envisioned plan aims to strengthen the development of an eco-friendly steel sector within the EAC, aligning with global efforts to cut carbon emissions and stimulate regional economic growth. Entitled “Towards a Green Steel Ecosystem in the East African Community”, the report delves into essential strategic considerations and prerequisites for fostering an emergent local steel sector. Furthermore, it offers a set of recommendations to curtail carbon emissions throughout the steel value chain.

Africa set to surge ahead as top lithium producer by 2027
Lithium holds a multifaceted role in the metalworking industry, serving not only as a crucial component in lithium-ion batteries but also finding applications in welding, heat treatment processes, and the production of metal alloys - especially aluminum ones - and lithium-based greases and lubricants. S&P Global emphasizes the rising importance of Africa's lithium supply market due to its vast, largely unexplored lithium resources. This aligns with the global shift towards electrification and energy transition, offering a promising long-term outlook for lithium. Despite challenges such as environmental issues, social concerns, and resource nationalism policies, Africa's substantial lithium reserves position it as a significant player in this evolving market. It is on track to potentially surpass North America and China as major lithium producer by 2027. Chinese companies have been particularly active in securing lithium resources from Africa, while Europe and the US also explore Africa as a vital source of critical minerals. Africa holds the potential to bolster the supply chain by integrating downstream processes and capitalizing on its resource wealth, as it is strategically situated near key demand hubs in Europe and North America.

“South Africa's steel industry needs to focus on competitiveness and capacity optimization”
A recent publication of the South African Iron and Steel Institute underscores the urgent need to rejuvenate and reshape the sector, with a strong emphasis on enhancing competitiveness during the final stages of product output. It's evident that there is an excess of capacity across various industrial processing sectors. Currently, there is surplus steel production capacity for local consumption, with utilization rates at 58%. This situation provides an opportunity to boost production by creating specialized steel products tailored to specific needs, such as durable steel, improved surface finish steel, and corrosion-resistant steel, among others. Drawing and rod processing facilities operate at only 53% capacity, highlighting room for expansion and growth. Read more >>

You could be interested in reading:
New Tube & Pipe Fair to debut as co-located event of Cable & Wire Fair 2023
200 industry professionals eager for the Wire & Cable Milan 2023 technical conference
The added value of B2B web portals in the current industrial scenario