Africa Steel Market size, share &Report

Africa Steel Market

The Africa steel market is entering a phase of steady and sustained growth driven by infrastructure development, industrial expansion, and rising investment in renewable energy projects. In 2024, the market reached a volume of 37.95 million tons, reflecting the continent’s rising consumption across construction, manufacturing, and utility sectors.

Looking ahead, the African steel industry is projected to grow at a CAGR of 3.40% from 2025 to 2034, reaching 53.02 million tons by 2034. Among the most transformative growth drivers is the rapid expansion of renewable energy infrastructure, which is generating substantial demand for high-strength, low-carbon steel used in solar installations, wind towers, hydropower components, and green hydrogen projects.

Key Market Drivers

1. Surge in Renewable Energy Projects

Africa is accelerating its shift toward clean and sustainable power sources. Countries like South Africa, Morocco, Egypt, Kenya, and Namibia are investing in:

• Utility-scale solar farms
• Onshore and offshore wind projects
• Hydropower modernization
• Green hydrogen production

These installations require high-strength structural steel, coated steel sheets, tubular steel, and corrosion-resistant alloys, boosting demand across the continent.

2. Rapid Infrastructure Development

Urbanization and population growth continue to stimulate steel consumption in:

• Roads and bridges
• Rail networks
• Housing projects
• Industrial parks
• Water pipelines
• Transport terminals

Public–private partnerships and international funding from the African Development Bank (AfDB), World Bank, and regional governments are accelerating construction activities.

3. Industrial Expansion and Local Manufacturing

African economies are diversifying beyond raw materials into value-added industries such as:

• Automotive assembly
• Machinery fabrication
• Building materials
• Mining equipment manufacturing
• Oil & gas processing infrastructure

This shift increases demand for both flat and long steel products.

4. Rising Demand for Sustainable, Low-Carbon Steel

As renewable energy projects and green industrial policies advance, African nations are increasingly opting for:

• Low-carbon steel
• Energy-efficient production technologies
• Recycled and secondary steel

This trend supports the growth of eco-friendly steel solutions.

Africa Steel Market Segmentation Overview

The Africa steel market is segmented based on product categories, highlighting the continent’s diverse consumption needs.

Africa Steel Market Breakup by Product

1. Long Steel Products

Long steel dominates Africa’s construction landscape, widely used across civil engineering and infrastructure projects.

a. Wire Rod & Wire Mesh

Used in fencing, industrial mesh, fasteners, and reinforcement applications, especially in housing and road construction.

b. Rebars

Reinforcement bars (rebars) are essential for concrete structures, making them one of the most consumed steel products in the region.

c. Structurals

This includes beams, channels, and angles used in bridges, high-rise buildings, transmission towers, and industrial plants.

d. Others

Other long steel variants include railway tracks, merchant bars, and light sections used across infrastructure and domestic fabrication.

2. Flat Steel Products

Flat steel consumption is increasing rapidly, especially with the growth of manufacturing, automotive, and renewable energy sectors.

a. HR Coils & Plates (Hot Rolled)

Used in shipbuilding, oil & gas pipelines, heavy machinery, and structural applications.

b. CR Coils (Cold Rolled)

Preferred for applications requiring precision and surface finish such as appliances, automotive parts, and metal furniture.

c. Colour Coated Sheet/Coil

Seeing strong demand for roofing, cladding, and solar mounting structures due to durability and weather resistance.

d. Welded Pipes

Essential for water distribution networks, oil and gas pipelines, and structural applications in solar and wind farms.

3. Carbon Steel

Carbon steel is the most widely used category in Africa due to its affordability and versatility. It is employed in construction, machinery, pipelines, and basic structural applications.

4. Alloy & Tool Steel

Demand is growing for higher-performance steels used in:

• Mining machinery
• Industrial tools
• Automotive components
• Power generation equipment

These steels offer enhanced strength, wear resistance, and durability.

5. Stainless Steel

Stainless steel is witnessing rising consumption in:

• Food processing
• Pharmaceuticals
• Chemical plants
• Renewable energy structures
• Household goods
• Water treatment facilities

Its corrosion resistance makes it suitable for Africa’s coastal and humid climates.

Competitive Landscape

The Africa steel market includes international giants, regional powerhouses, and local manufacturers who are expanding capacity to meet rising demand. Companies are investing in modern technology, energy-efficient production, and value-added steel to strengthen their market position.

Leading Companies Covered

• POSCO Co., Ltd.
  A global steel leader supplying high-grade flat and specialty steels to various African industries.
• Acerinox S.A.
  Renowned for stainless steel production, serving construction, energy, and food-processing sectors.
• Nippon Steel Corporation
  Delivers premium steel solutions for manufacturing, construction, automotive, and industrial applications.
• Outokumpu Oyj
  A global supplier of corrosion-resistant stainless steel, used widely in renewable energy and infrastructure.
• African Industries Group
  One of West Africa’s largest steel producers with extensive operations in Nigeria.
• Egyptian Steel Group
  A major producer of rebars, billets, and structural steels supporting Egypt’s infrastructure boom.
• El Marakby Steel
  An expanding steel manufacturer offering rebars, billets, and wire rods.
• Libyan Iron and Steel Company
  One of the largest steel producers in North Africa, supplying long and flat steel.
• Best Angola Metal
  Known for manufacturing rebars and structural steel for Angola’s construction sector.
• Others
  Additional local and regional manufacturers contributing to Africa’s rising steel output.

Key Trends Transforming the Africa Steel Market

1. Rise of Solar and Wind Energy Steel Consumption

Solar mounting structures, wind turbine towers, and battery storage facilities are all steel-intensive. As Africa becomes a hotspot for renewable investment, demand for these products is surging.

2. Government Initiatives to Boost Local Steel Production

Countries such as Egypt, Nigeria, Morocco, Algeria, and South Africa are implementing policies encouraging:

• Local beneficiation
• Steel recycling
• Domestic manufacturing
• Reduction of steel imports

This is improving supply chain resilience.

3. Growing Demand for High-Performance Steel

Infrastructure megaprojects and energy installations require steel with:

• Higher tensile strength
• Improved corrosion resistance
• Advanced alloy compositions

This is pushing innovation across mills and processors.

4. Increasing Foreign Investment

Asian, European, and Middle Eastern companies are investing in African steel production, particularly in:

• Integrated steel plants
• Rolling mills
• Renewable energy components manufacturing

This is strengthening production capacity and technical expertise.

Future Outlook (2025–2034)

The Africa steel market is set for consistent growth over the next decade, supported by:

• Strong infrastructure development pipelines
• Expansion of renewable energy projects
• Growing manufacturing and industrialization
• Rising product diversification across carbon, alloy, and stainless steel
• Increasing investments in sustainable and low-carbon steel production

By 2034, the continent is expected to reach a steel consumption volume of 53.02 million tons, reflecting its rising role in global industrial development.