Africa Steel Market (2021 - 2027) | Trends, Outlook & Forecast, Size, Share, Revenue, Growth, Analysis, value, industry & COVID-19 IMPACT

Latest Development (2022) in Africa Steel Market

Africa Steel Market is expected to gain momentum during the forecast period on account of its diverse application. Growing demand in various industries such as the automobile and construction sectors are adding to the Africa Steel Market Growth. Rising fabrication of metal goods coupled with increasing production of machinery is driving the development of the industry. Surging urbanization and increasing demand for water and energy are providing lucrative opportunities for the development of the market. Rising development in the manufacturing and industrial sector is also one of the major factors adding to the market growth. 

Africa Steel Market Synopsis

Africa steel market report thoroughly covers the market by product type, distribution channels, and countries including Kenya, Nigeria, South Africa, and the rest of Africa. The Africa steel market outlook report provides an unbiased and detailed analysis of the ongoing Africa steel market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Africa Steel Market is expected to gain momentum in the forthcoming years on the back of the rising use of steel in the production of household appliances. Additionally, the growing expansion of the construction sector with some ongoing and upcoming construction projects such as the Dangote Oil Refinery, Lagos- Calabar Railway, and Kenya Standard Gauge Railway are some of the factors that reflect the massive use of carbon steel in the development of oil refinery pumps and in railway lines, as a result, it is estimated to boost the substantial growth of the steel market in the entire Africa region in the coming timeframe.

Africa Steel Market is expected to register growth in the coming years. The global steel industry is in a disastrous situation, far worse than anything experienced since the beginning of this millennium with serious implications for domestic steel makers. This time around the implications for the short, medium, and long term are particularly negative. Where Africa will be exposed as a result of reduced export demand, which will need support in some form or alternative markets, including China, Germany, the United States, the United Kingdom, and India excluding countries in the southern Africa Development community. 

According to 6Wresearch, the Africa Steel Market is likely to witness growth during 2021-2027. The Africa steel industry had approximately 10.3-11.9 mt of steel production capacity with 4.9-6.2 mt of square steel capacity over domestic demand in 2008. Various factor, including Africa distance from the major export market, means that Africa steel producers are not cost-competitive in this market and that only 208 mt of that excess steel capacity was able to be exported in 2008. More than 85% of Africa steel share of product value is typically very low. These industries include building and construction, automotive, machinery, mining, electrical appliances, and white goods. Regular fluctuation in the prices of steel is one of the restraining factors in the growth of the industry. 

Africa steel market segment divided into 7 parts named Rebar, Foundry products, Domestic appliances, automotive components, Tooling, Rail products, Drum and packaging. The segmentation depicted above was derived through intense discussion with the steel industry including the primary metal manufacturing part of the value chain. According to companies in this segment of the market, Africa is increasingly being viewed as a high-cost low productive manufacturing destination. There is virtually no benefit in local steel production for the manufacturers (despite Africa’s rich iron ore resources) and operational costs such as labor (that typically makes up around 45% of operational costs) and electricity costs have escalated faster than product prices over the last 5 years in particular. The industry in Africa sells a large number of products in the construction industry and includes products such as sections, tubes, and plates in a large number of sizes and shapes. The applications of steel market studies across Automotive, Construction, Consumer, Appliances, Manufacturing, Petrochemical, shipping, and package.

COVID-19 Impact on Africa Steel Market

Covid-19 has caused further distress within the industry with production expected to drop by as much as 50% over the short term. The department of trade and industry has warned that the steel industry could experience a loss of ZAR 1 billion amid the ongoing lockdown unless the government intervenes with a bailout package. Sectors like Mining and quarrying- Negative, Manufacturing- Slightly negative, Electricity, gas and water- very negative, construction- very negative.

Market Analysis by Application

On the basis of application, the building and construction sector is expected to register the highest growth during the upcoming years. 

Key Highlights of the Report:

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 201 to 2020.
• Base Year: 2020.
• Forecast Data until 2027.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Players in the Market

Some of the key players in Africa Steel Market are:

• ArcelorMittal South Africa Limited
• African Industries Group
• Steelmor Industries
• Ezz Steel
• MD IRON STEEL FOUNDRY
• Beshay Steel
• Scaw Metals Group
• Libyan Iron and Steel Company
• Maghreb Steel
• Suez Steel