Egyptian steel producer Ezz Steel has announced plans to invest approximately $1.16 billion over the next two years to expand its production capacity, according to statements by founder Ahmed Ezz cited in media reports.
Mr. Ezz said the investment reflects a shifting global trade environment in which protectionist policies are increasingly constraining cross-border steel flows and reshaping market access for exporters.
Global protectionism weighs on steel exports
According to Mr. Ezz, current market conditions are particularly challenging for steel exporters, with rising tariffs and trade barriers limiting access to key international markets. He noted that similar pressures are being felt by steel producers in Western economies, contributing to the introduction of higher import duties in a number of countries.
Ezz Steel generated around $1.6 billion in export revenues in 2024. However, the company expects exports in 2025 to fall below $1 billion as restrictions on external markets intensify.
Focus shifts toward domestic and regional demand
In response to weaker export prospects, Ezz Steel is placing greater emphasis on strengthening domestic demand. Mr. Ezz highlighted construction and infrastructure projects as the main pillars supporting steel consumption in the local market.
He also underlined the potential advantages of deeper economic integration among Arab countries, suggesting that closer regional cooperation could provide more stable growth opportunities compared with reliance on developed industrial markets.
Domestic pricing trends remain sensitive
Commenting on price developments in Egypt, Mr. Ezz said the company reduced steel prices in November and December 2024, though these cuts were temporary. Prices were raised again in January 2025 but remain below the levels recorded in November 2024.
He noted that steel prices have a broad impact on the Egyptian market, as a significant portion of demand comes from individual buyers. Large-scale infrastructure and construction projects, by contrast, tend to be less sensitive to short-term price movements, as such fluctuations can generally be absorbed within overall project budgets.
