At a Glance
- Ezz Steel invests $1.1 billion to expand capacity as exports face growing global constraints.
- Domestic construction and infrastructure demand drive Egypt-focused growth strategy for Ezz Steel.
- Pricing adjustments reflect high retail demand and volatile steel market conditions locally.
Ezz Steel, Egypt’s leading steelmaker, is preparing to invest about $1.1 billion over the next two years to expand production capacity, a bold bet on domestic demand as global trade barriers tighten and exports come under pressure.
The expansion plan, disclosed by Chief Executive Officer Ahmed Ezz, comes at a time when protectionist policies are reshaping global steel flows, squeezing exporters across emerging and developed markets alike.
Ezz to expand Egypt’s steel production by $1.1 billion
Ezz described the current environment as a setback for cross-border trade, noting that the pressures facing Egyptian producers now mirror those seen in Western markets that have resorted to tariffs to shield local industries.
Domestic market drives expansion plans
Ezz Steel exported roughly $1.6 billion worth of products in 2024, amid a subdued outlook in 2025. The company expects exports to fall below $1 billion as access to external markets becomes more constrained. That shift is pushing the steelmaker to refocus on Egypt’s domestic economy, where infrastructure development and construction activity remain central demand drivers.
Export challenges amid global trade barriers
With mega projects and housing developments continuing to anchor consumption, Ezz believes local demand can absorb increased capacity, even as exports soften. He has also called for deeper Arab economic integration, arguing that stronger regional alignment could offer more reliable growth than dependence on advanced industrial markets that are increasingly inward-looking.
Price adjustments reflect local market sensitivity
Pricing remains a sensitive issue in Egypt’s steel market. The company cut prices in November and December 2024 to stimulate demand, before raising them again in January 2025.
Even so, prices remain below late-2024 levels. Ezz has likened steel’s price sensitivity to that of food commodities, given the high level of retail and individual participation in purchases, compared with large infrastructure projects that are better positioned to absorb volatility.
Long-term strategy and regional integration
The planned $1.1 billion investment underscores Ezz Steel’s confidence in Egypt’s long-term fundamentals and its determination to defend market leadership by scaling production, strengthening local supply, and navigating a more fragmented global steel landscape.
