Algeria to launch second DRI production facility by end of year

Thursday, 15 August 2019 16:40:49 (GMT+3)   |   Istanbul
       

Algeria is set to have another direct reduced iron (DRI) module launched soon as investment continues in one of the key projects for steel production in the country. As a result, potentially Algeria’s billet imports might be reduced, but trade will generally depend on the development of the market situation.

Algerian Qatari Steel (AQS) officially plans to launch the 2.5 million mt per year DRI module by the end of October this year. Some market sources, however, foresee that the start-up will be pushed back until the end of the year. As a result, Algeria will have a second DRI producing facility. The first one of the same capacity, launched late last year, is currently operated by Tosyali Algerie. In addition, AQS plans to start its 2.2 million mt per year EAF at the end of September.

Once the project is commissioned and the equipment is successfully put into operation, AQS is expected to benefit from higher cost-efficiency and to lower its dependence on import billet feedstock. However, taking into account the reduced rebar rolling utlization rate as a result of subdued domestic demand in Algeria, the billet requirement of AQS has been reduced recently. “Domestic sales are limited due to political reasons, which will not be resolved easily,” another Algerian steel producer said. In addition, once its very own steel production is in place, AQS is foreseen to target longs exports as well, SteelOrbis understands.


Similar articles

Algeria aims to start long-delayed iron ore deposit development

13 Jul | Steel News

El Hadjar to show weaker output in 2019

30 Sep | Steel News

Tosyali Holding to construct new mega pipe plant in Algeria

05 Dec | Steel News

Algerian Qatari Steel’s Bellara complex to start production in 2018

17 Jan | Steel News

Ex-southern European rebar offers not so attractive for Algerian buyers

27 Mar | Longs and Billet

Algerian government confirms renationalization of ArcelorMittal Annaba

18 Sep | Steel News

ArcelorMittal Annaba workers to go on strike next week

05 Sep | Steel News

Turkey’s Toscelik starts meltshop cold tests at new Algerian rebar plant

31 Jan | Steel News

Lucchini unveils several rail orders from Europe and overseas

28 Sep | Steel News

Algeria and Qatar ink MoU for construction of new Algerian steel mill

09 Jul | Steel News