Report expects iron consumption in Egypt to grow to 6.8 million tons by 2024

CAIRO - 15 September 2024: A report by Ezz Steel expects that Egypt’s iron consumption will increase by 5 percent in 2024 to 6.8 million tons, driven by the completion of infrastructure projects, the payment of contractors’ dues, and the expected resumption of new construction permits.

 

Flat steel consumption is also expected to remain stable at 1.5 million tons in 2024, and begin to increase thereafter.

 

According to the report, the World Steel Organization expects a limited recovery in global steel demand in 2024, increasing by 1.7 percent to 1.85 billion tons.

 

This represents a gradual recovery after years of stagnation and volatility, but this growth is still constrained by ongoing geopolitical and economic uncertainty. Concerns about China’s economic trajectory, especially in light of its structural transformations in the real estate market, may affect Chinese and global consumption.

 

China's steel exports are expected to exceed 100 million tons in 2024, the highest level since 2016, but this exaggerated export trend is resulting in a stimulus in global markets. Many local producers in different countries suffer from competition with low-priced Chinese steel, which has prompted many countries, including the United States, the European Union, Canada, South Africa, Turkey and Brazil, to impose high customs tariffs and various trade measures to protect their local industry.

 

Egypt's consumption of rebar has witnessed a significant decline since 2016, during which consumption reached 8.6 million tons, an increase of 24 percent over 2023, due to the decline in private construction activity, but consumption is expected to increase with the success of the exchange rate liberalization and the economic decisions associated with it to restore economic growth. It is also expected that the new building legislation and its executive regulations, which were approved in 2023 and 2024, will lead to the issuance of more private building permits and the resumption of private construction in Egypt at a good pace.