Rising Chinese steel exports are intensifying price competition as infrastructure investment supports demand across Africa, according to a market report published by Alkagesta. The company, whose steel trading business operates as Alkavex, identified financing, shipment coordination and customer relationships as important factors in securing business alongside competitive sourcing.
Citing the OECD’s Steel Outlook 2026, Alkagesta reported that Chinese steel exports increased by 13.8% in 2025 to a record 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%, up from 19% in 2019. Alkavex deputy chief executive Nijat Osmanli said Chinese supply frequently serves as buyers’ pricing benchmark, putting pressure on competing producers’ margins.
The report presented Africa as a growing outlet for steel amid that competition. It cited Worldsteel’s April 2026 outlook, which forecasts African steel demand growth of 3.8% in 2026 and 4.6% in 2027. Separately, the OECD figures cited by Alkagesta put growth at 16.1% in 2025, slowing to an expected 4.4% in 2026. Chief executive Jean-Pierre Artigala linked the company’s African strategy to demand for housing, transport networks and industrial development.
Alkagesta said wire rods, beams, hot-rolled coil, tubes and merchant bars were among Alkavex’s strongest-selling products in 2026, alongside grinding balls used by the mining industry. However, payment arrangements and infrastructure constraints complicate sales. The report described one recent transaction in which meeting a customer’s project deadline depended on matching vessel availability with shipment timing rather than obtaining a lower purchase price.
Supply shocks have also complicated pricing. According to Alkagesta, a fatal mining accident in Shanxi prompted the suspension of 155 coal mines for inspections, helping push coking coal futures to a 19-month high in early June. Weak seasonal demand nevertheless restrained steel prices. The company also reported that a weekend of shipping disruption through the Strait of Hormuz affected steel prices and freight rates.
Chief financial officer Sylvain Artigala said transaction-level financial controls were central to managing rapid changes in margins. Alkagesta said Alkavex was expanding in Africa and increasingly South America, supported by access to Chinese-origin supply, while identifying trade restrictions, price volatility and freight disruption as risks over the next six to twelve months.
Read the original announcement on Alkagesta.