Record Chinese steel exports are intensifying competition among suppliers as rising African infrastructure demand creates opportunities for traders, according to a market commentary published by Alkagesta. The company says its steel trading arm, Alkavex, is prioritising African growth, with shipment coordination and financial discipline central to its approach in a volatile market.
Citing the OECD’s Steel Outlook 2026, Alkagesta reports 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 worldwide steel exports reached 41%, compared with 19% in 2019. Deputy chief executive Nijat Osmanli said Chinese supplies frequently serve as buyers’ pricing benchmark, putting pressure on competing producers and their margins.
African consumption is expected to keep expanding, although the forecasts cited by Alkagesta differ. Worldsteel’s April 2026 outlook anticipates demand growth of 3.8% this year and 4.6% in 2027. The OECD estimates that African demand rose by 16.1% in 2025 and projects a slower 4.4% increase in 2026 as investment cycles mature. Chief executive Jean-Pierre Artigala linked the company’s focus on Africa to urbanisation and continuing requirements for housing, transport and industrial infrastructure.
Alkagesta identifies 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 industry. However, the company argues that competitive pricing alone does not determine whether transactions succeed. Payment arrangements, product specifications, documentation, mill approvals and transport constraints also matter. In one recent transaction described without identifying the customer, meeting a project deadline depended on aligning vessel availability with shipment timing rather than negotiating a lower price.
Chief financial officer Sylvain Artigala said rapid changes in trade policy and raw material prices made transaction-level risk assessment essential. Alkagesta also pointed to freight disruption and trade restrictions as risks over the next six to twelve months. Beyond Africa, the company says access to Chinese-origin steel is supporting expansion into South America, while its existing petroleum trading relationships in Türkiye and Eastern Europe provide market knowledge and counterparty connections for the steel business.
Read the original announcement on Alkagesta.