At the 19th Arab Steel Summit, held in Cairo, Egypt, on November 3-4, a panel discussion on the steel markets of Morocco, Algeria, Egypt, Iraq and Syria brought together industry representatives to discuss the challenges and opportunities facing the steel sectors in these countries.
In Egypt, steel consumption stood at around 10 million mt in 2025 and is estimated at around 9.9 million mt for 2026, reflecting a relatively stable trend, according to Eng. Hassan El Marakby, CEO of El Marakby Steel Company. Rebar consumption in Egypt is projected at 7-7.6 million mt in 2026, up from 6.7 million mt in 2025, while production stood at 8.4 million mt in 2025, representing a capacity utilization rate of around 54 percent. Based on figures for the first eight months of 2026, production is estimated at 8.5 million mt, while the billet capacity utilization rate stands at 70 percent, supported by import safeguard measures that have reduced billet imports to 2.5 million mt. In the flat steel segment, the capacity utilization rate for HRC remains high at 96 percent, with production expected to reach 2.2 million mt in 2026, supported by safeguard measures, while consumption is projected at 2.1 million mt. According to El Marakby, Egypt has sufficient production capacity for long products and HRC but has room to expand production of beams, rails, sections, plates and certain pipe products.
Steel demand in Egypt is supported by housing, energy, irrigation and water infrastructure projects, while investment priorities for 2026-2027 include total planned investments of EGP 3.7 trillion, with the private sector expected to account for 59 percent. Raw material supply remains one of the main challenges for Egypt's steel sector, with annual imports valued at $2.8 billion, of which iron ore accounts for 75 percent and steel scrap for 23 percent.
According to El Marakby, Egypt has strong competitive advantages, with its position among the world's top 20 steel-producing countries, its strategic geographical location between the MENA region and Europe, and its skilled workforce. However, the country's steel industry faces several challenges, including low-priced exports from other countries driven by global overcapacity, shrinking export opportunities amid growing protectionism, and high energy-related production costs. Further challenges include the EU's Carbon Border Adjustment Mechanism (CBAM) and ongoing discussions regarding restrictions on scrap exports to certain countries, including Egypt. El Marakby emphasized that competitiveness is no longer determined solely by prices but also by market access, verified emissions data and energy cost management. He also noted that Egypt's priorities include increasing employment and improving cost competitiveness. Concluding his presentation, El Marakby underlined that stronger partnerships among Arab countries in the steel sector could help control costs, create opportunities for high-quality investments, improve raw material security and facilitate regulatory compliance.
In his presentation on Algeria, Mr. Abdelkadir Khellaf, marketing director at Algerian Qatari Steel (AQS), outlined three main factors shaping the market: current demand, expansion of production and manufacturing capacity, and the need to align flat steel production with growing demand. Algeria's steel market has reached 3.5-3.8 million mt annually, with demand projected to increase further to 4.5-5 million mt by 2030. Growth is expected to be driven largely by the housing sector, which accounts for around 50 percent of demand, followed by the industrial sector with a share of approximately 25 percent. Algeria is also investing in road and transportation infrastructure, including the addition of 2,000 km of railways, partly to support mining activities. In addition, in recent years Algeria has been transitioning from a primarily domestic market to an exporter, targeting markets in Europe, Africa and the US. Despite strong regional growth and domestic market protection measures, such as customs duties and import controls, the country faces external challenges, including declining steel consumption in certain markets, such as a reported 26 percent decrease in Europe, and changes in international trade policies, particularly the EU's CBAM.
Speaking about Morocco, Mr. Hatim Senhaji, CEO of Maghreb Steel, highlighted that the country has six steel producers, five producing long products and one manufacturing flat steel. Steel production in Morocco stood at around 3.8 million mt in 2024-2025, while consumption reached around 3.7 million mt. The country's flat steel production capacity stands at up to 2.6 million mt, meeting a significant share of domestic demand. As regards imports, scrap accounts for around 61 percent, while billet imports totaled approximately 1.2 million mt in 2025. A significant share of Morocco's scrap imports originates from the EU, meaning that the country could face challenges similar to those of Egypt if the proposed EU scrap export restrictions are introduced. Morocco continues to balance local production with imports of specific steel products, including certain flat and long steel categories, while addressing trade policy developments and regional competitiveness.
In Iraq, growth in the steel sector is being driven by reconstruction and urbanization in war-affected areas, with the country facing a shortage of around 1 million housing units. Additional demand is expected from major construction projects near Baghdad and in northern Iraq. The country is also investing in transportation infrastructure, including a 1,074 km railway, metro projects in Baghdad and the Mosul region, as well as oil and gas pipelines and related facilities. Mr. Bilal Omar Ismail, board member of Iraq-based MAS, highlighted the Basra-Baniyas and Basra-Aqaba pipeline projects. In addition to postwar reconstruction challenges, Ismail pointed to raw material supply issues, particularly availability and quality, as well as logistical difficulties stemming from underdeveloped transportation networks. Another major challenge is the country's electricity supply deficit, with demand estimated at around 44 GW compared to production of only 30 GW.
Syria, meanwhile, faces significant reconstruction challenges following the war that lasted from 2011 to 2024, particularly in water and electricity supply for its population of 40 million. However, the country offers considerable potential for construction activity amid expectations of a gradual economic recovery, according to Mr. Anas Joud, chairman of Syria-based Joudco Steel. Joud highlighted government initiatives aimed at facilitating investment, strengthening international cooperation and improving stability at border crossings. He also noted that efforts launched in 2025 to rehabilitate previously closed factories have resulted in a 30-40 percent increase in production. As refugees gradually return through initiatives supported by the government and international organizations, domestic consumption is increasing, while some industrial sectors are experiencing steel shortages. Economic growth in Syria is expected to reach around 10 percent in 2026, pointing to improving investment prospects and ongoing structural recovery.
During the panel discussion, speakers emphasized that although Arab countries have different national priorities and regulatory frameworks, stronger regional economic cooperation is essential to overcoming common challenges and improving competitiveness. They highlighted structural issues, including differences in raw material availability, energy and electricity supply constraints, and the impact of international trade policies. Panelists also stressed the importance of public-private cooperation and coordinated efforts among Arab countries to address supply-demand imbalances, expand production capabilities and support sustainable growth across the region.
