Record Chinese steel exports are intensifying competition among suppliers as infrastructure investment supports demand across Africa, according to a market commentary published by Alkagesta. The company says its steel trading arm, Alkavex, is pursuing growth in African markets, where financing, transport constraints and delivery requirements can be as important to securing business as the price of material.
Citing the OECD’s Steel Outlook 2026, Alkagesta reported that Chinese steel exports increased by 13.8% in 2025 to 131.2 million tonnes. That contrasted with a 6.2% decline in global steel exports when intra-regional trade was excluded. China accounted for 41% of world steel exports in 2025, up from 19% in 2019. Alkavex deputy chief executive Nijat Osmanli said Chinese offers frequently serve as a benchmark for buyers comparing suppliers, putting competing producers’ margins under pressure.
The company pointed to two forecasts indicating further African demand growth. Worldsteel’s April 2026 outlook projected increases of 3.8% in 2026 and 4.6% in 2027. Separately, the OECD estimated growth of 16.1% in 2025, followed by a slower 4.4% expansion in 2026 as investment cycles matured. Chief executive Jean-Pierre Artigala linked the opportunity to urbanisation and continuing requirements for housing, transport and industrial development.
Alkagesta identified wire rods, beams, hot-rolled coil, tubes and merchant bars as Alkavex’s strongest-selling products in 2026, alongside grinding balls used by the mining sector. The commentary also described an unnamed transaction in which meeting a customer’s project deadline depended on arranging vessel capacity and shipment schedules rather than negotiating a lower purchase price. Osmanli highlighted specifications, documentation, financing and mill approvals as other important considerations.
Supply disruptions remain a source of uncertainty. Alkagesta said a fatal mining accident in Shanxi province prompted safety inspections and the suspension of 155 coal mines, helping lift coking coal futures to a 19-month high in early June. Weak seasonal demand nevertheless kept steel prices under pressure. It also cited shipping disruption in the Strait of Hormuz as affecting steel prices and freight rates. Chief financial officer Sylvain Artigala said transaction-level financial controls underpin expansion into Africa and, increasingly, South America, while trade restrictions and freight disruption remain risks.
Read the original announcement on Alkagesta.