Egypt: Steel Industry Overview
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)
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)
Production Growth: growing
consumption will result in production gains with continued improvement in
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
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
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
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
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
Total Imports of Flat Steel Products to Egypt
2001 - Egypt Steel Industry Overview
El-Dikheila Steel Plant Expansion