Egypt to boost domestic alloy, billet production capacity

Egypt will boost domestic alloy and steel billet production capacities through new investments to support the country's iron and steel industry, the industry ministry said Aug. 16 in a statement.

The ministry is working to expand supporting industries for the iron and steel sector and integrate them into local and global supply chains, increasing the value and competitiveness of Egyptian products, reducing imports, deepening local manufacturing and expanding export opportunities, it said.

Industry minister Khaled Hashem said in a press conference during his visit to the Abu Zenima Industrial Zone in South Sinai on Aug. 16 that the silicomanganese and ferromanganese alloys produced by the Sinai Manganese plant were important for both domestic and international markets. They improve the quality of finished steel products by removing impurities and enhancing mechanical properties, particularly hardness, corrosion resistance and durability.

Noting that the plant's current capacity stands at 18,000 metric tons/year, the minister said the capacity will increase to 50,000 mt/y by the end of 2028 with new investments.

Around 49% of the plant's production is exported to Turkey, Libya and Italy, he added.

Egypt's Industrial Development Authority, meanwhile, said in a statement in the week ended Aug. 14 that it offered eight new licenses to manufacture steel products, specifically continuous-cast billets.

The authority said the new licenses were intended to boost domestic billet production to meet the needs of local rolling mills, deepen local manufacturing, reduce reliance on imports, curb the use of foreign currency and strengthen the competitiveness of Egypt's steel industry.

The offering comprises four licenses, each for an annual production capacity of 500,000 mt, and another four licenses, each for a capacity of 200,000 mt/y, with a combined targeted capacity of 2.8 million mt/y, the authority added.

Platts, part of S&P Global Energy, assessed CIS export billet at $465/mt FOB Black Sea Aug. 14, unchanged day over day and week over week.