Egypt: Steel Industry Overview (2005 )

Finished product consumption grew by 28% in 2005Long products demand went up from 2004 to 2005 by 800k mt to 3.6 m mt . Flat Products demand went up in the same period by 174k mt to 0.8 m mt.
Investments in CR capacities doubled production in the last two years to 0.5 m mt.
Total capacity will reach 0.9m mt in 2006 (vs 0.7m mt in 2005)
Finished production increased by 1.1 m mt in 2005 to 6.5 m mt pushing the utilization rate up to 68% (57% in 2004).
Re-rollers are backward integrating into steel making.
Total Crude capacity increased by 0.7 m mt to 6.2 m mt.
Demand Growth: political stability, economic reform and increased government spending will be conducive to consumption growth. The key sectors are housing and (export-oriented) industry.
Production Growth: growing consumption will result in production gains with continued improvement in utilization rates.
Excess Production Absorbed Locally: little or no increase is expected in exports as the additional production will be diverted to meet local demand.
Local Steel Prices: will continue to mirror international prices and remain prohibitive to large scale imports.
Exports Diversification: with new capacities coming on stream in traditional importing countries in 2006 Egyptian exporters will look for new (emerging) markets.
After Iran and Turkey, Egypt is the largest M.E. steel producer. Due to its production and export potential EZDK will continue to play a key role in meeting import requirements from the region.
Finished consumption in Egypt has grown by more than double the regional average in 2005 (13%). The Egyptian steel industry is gearing up for a return to the peak years of the late 1990’s.
Egypt’s crude output is higher than finished steel. Its finished consumption, though, is largely dominated by long product (80/20 long/flat) that is higher than the regional average (70/30).
Egypt’s scrap imports are set to rise – while billet imports decline – as crude output increases.
Looking forward, the M.E. will witness significant development in the coming few years … not only in the Gulf but in other countries as well (Algeria, Iraq, Sudan, Egypt). The region is expected to sustain steel demand growth in excess of 10% p.a. till end of decade.
Construction boom will be the driving force for growth, not just in Egypt but across the M.E. countries.

2009 - 2012 - Egypt Steel Mills Expansion Plans
El-Dikheila Reinforcing Bar Project - Background - Performance - Impact - Overall Assessment (WorldBank)
2005 - Egypt Steel Industry Overview
2004 - EZZ DK Total Production, Sales & Exports of Long & Flat Products
2003 - 2004 - Egypt Steel Industry Overview
2002 - El-Dikheila Steel Plant Expansion, Egypt
2002 - EZDK Company Profile
2002 - Total Imports of Flat Steel Products to Egypt
2001 - Egypt Steel Industry Overview
2000 - El-Dikheila Steel Plant Expansion