Record Chinese steel exports are intensifying competition as Africa’s infrastructure needs support demand, according to a market commentary published by Alkagesta. The company, whose steel trading arm is Alkavex, identifies vessel availability, financing and shipment coordination as important factors in serving African buyers alongside competitive prices.
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 excluding intra-regional trade. China’s share of world steel exports reached 41%, compared with 19% in 2019. Alkavex deputy chief executive Nijat Osmanli said Chinese supplies frequently provide the benchmark against which buyers assess other origins, squeezing competing producers’ margins.
African demand forecasts point to further expansion, although the projections cited by Alkagesta differ. Worldsteel’s April 2026 outlook anticipates growth of 3.8% this year and 4.6% in 2027. The OECD estimates that demand rose by 16.1% in 2025 and forecasts a slower 4.4% increase in 2026. Chief executive Jean-Pierre Artigala linked the company’s African growth strategy to urbanisation and investment in housing, transport and industrial development.
Alkagesta listed wire rods, beams, hot-rolled coil, tubes and merchant bars among Alkavex’s strongest-selling products in 2026, alongside grinding balls used by the mining sector. It said payment arrangements and infrastructure constraints complicate transactions in African markets. In one recent deal described without customer or route details, meeting a project deadline depended on arranging a vessel and shipment schedule rather than achieving a lower purchase price.
The commentary also highlighted exposure to raw-material and freight disruptions. It said a fatal mining accident in Shanxi at the end of May prompted the suspension of 155 coal mines for inspections, lifting coking coal futures to a 19-month high in early June. Weak seasonal demand nevertheless kept steel prices under pressure. Separately, Alkagesta said a weekend of disruption through the Strait of Hormuz affected steel prices and freight rates.
Alkavex is also expanding into South America through its access to Chinese-origin supply, according to Alkagesta. The company said its existing petroleum products relationships in Türkiye and Eastern Europe provide market knowledge and counterparties for further steel expansion. Chief financial officer Sylvain Artigala emphasised assessing transaction risks as policy changes and raw-material movements can rapidly alter margins.