Representatives of the steel industry discussed prospects for Egypt, Algeria, Morocco, Iraq and Syria at the 19th Arab Steel Summit in Cairo on November 3–4. Participants said construction and infrastructure projects are supporting demand, while high costs, shortages of raw materials and energy, and trade restrictions are constraining growth.
Egypt: steady demand and high flat-steel capacity use
Egypt consumed about 10 million metric tons of steel in 2025, with demand expected to reach 9.9 million metric tons in 2026, according to Hassan El Marakby, CEO of El Marakby Steel. Rebar consumption is projected to rise from 6.7 million metric tons in 2025 to 7–7.6 million in 2026. Steel production was 8.4 million metric tons in 2025, with capacity utilization of about 54%. Based on the first eight months of 2026, output is estimated at 8.5 million metric tons, while billet capacity utilization stands at 70%.
Safeguard measures have reduced billet imports to 2.5 million metric tons. In flat steel, hot-rolled coil capacity utilization is 96%; 2026 production is expected to reach 2.2 million metric tons, compared with consumption of 2.1 million. El Marakby said Egypt has sufficient capacity for long products and hot-rolled coil, but could expand output of beams, rails, sections, plates and some pipe products.
Demand is supported by housing, energy, irrigation and water infrastructure. Planned investment for 2026–2027 totals 3.7 trillion Egyptian pounds, with the private sector expected to account for 59%. Raw materials remain a major challenge: annual imports are valued at $2.8 billion, of which iron ore accounts for 75% and steel scrap for 23%.
El Marakby cited Egypt’s position among the world’s 20 largest steel producers, its strategic location between the Middle East and North Africa and Europe, and its skilled workforce as competitive advantages. Challenges include low-priced exports amid global overcapacity, shrinking export opportunities as protectionism grows, and high energy costs. Other risks include the EU’s Carbon Border Adjustment Mechanism (CBAM) and proposed restrictions on scrap exports. As El Marakby noted, competitiveness now depends not only on price but also on market access, verified emissions data and energy-cost management.
Algeria and Morocco expand production and exports
Algeria’s annual steel demand is 3.5–3.8 million metric tons and could rise to 4.5–5 million by 2030, said Abdelkadir Khellaf, marketing director at Algerian Qatari Steel. Housing accounts for about half of demand and industry for roughly a quarter. Algeria is developing road and transport infrastructure, including plans to add 2,000 km of railway, partly to support mining. The country is also shifting from a primarily domestic market towards exports to Europe, Africa and the US. Khellaf cited falling steel consumption in some markets, including a reported 26% decline in Europe, and the impact of CBAM among external risks.
Morocco has six steel producers: five make long products and one produces flat steel. Production in 2024–2025 was about 3.8 million metric tons, while consumption was around 3.7 million, according to Hatim Senhaji, CEO of Maghreb Steel. Flat-steel capacity is up to 2.6 million metric tons, meeting a significant share of domestic demand. Scrap accounts for about 61% of imports, while billet imports reached approximately 1.2 million metric tons in 2025. A significant share of scrap comes from the EU, so possible European export restrictions could affect Morocco as they might Egypt. The country continues to combine domestic production with imports of certain flat and long steel products.
Reconstruction drives demand in Iraq and Syria
Steel demand in Iraq is being driven by reconstruction in war-affected areas and urbanization. The country has a housing shortfall of about 1 million units, with further demand expected from major projects near Baghdad and in the north. Infrastructure plans include a 1,074 km railway, metro projects in Baghdad and the Mosul region, and oil and gas pipelines. Bilal Omar Ismail, a board member of Iraq-based MAS, cited the Basra–Baniyas and Basra–Aqaba pipeline projects. The sector faces difficulties with raw-material availability and quality, as well as logistics because of an underdeveloped transport network. Another challenge is the electricity deficit: demand is estimated at about 44 GW, compared with production of 30 GW.
Syria faces extensive reconstruction after the war that lasted from 2011 to 2024, including the restoration of water and electricity supplies for a population of 40 million. The country nevertheless has considerable construction potential as its economy gradually recovers, said Anas Joud, chairman of Syria-based Joudco Steel. Efforts launched in 2025 to rehabilitate previously closed factories have raised production by 30–40%, he said. As refugees return, domestic consumption is increasing, and some industries are already experiencing steel shortages. Syria’s economic growth is expected to reach about 10% in 2026.
Summit participants said closer cooperation is needed among Arab countries, despite their different conditions and regulatory frameworks. In their view, coordinated efforts by governments and businesses could help balance supply and demand, expand production and address shared problems involving raw materials, energy supplies and international trade policy.
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