Record Chinese steel exports are intensifying competition as expanding African infrastructure needs create outlets for supply, according to a market commentary published by Alkagesta. The company said its steel trading arm, Alkavex, is targeting that demand while managing exposure to shifting trade policies, volatile prices and logistical constraints.
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 exports excluding intra-regional trade. China’s share of world steel exports reached 41%, against 19% in 2019. Alkavex deputy chief executive Nijat Osmanli said Chinese supply frequently provides the benchmark against which buyers assess competing offers, squeezing other producers’ ability to protect margins.
African consumption offers a contrasting demand picture. Alkagesta cited Worldsteel’s April 2026 forecast for demand growth of 3.8% this year and 4.6% in 2027. Separately, the OECD put African growth at 16.1% in 2025, with an expected slowdown to 4.4% in 2026. Chief executive Jean-Pierre Artigala linked the company’s focus on Africa to urbanisation and continuing requirements for housing, transport and industrial investment. Alkavex identified wire rods, beams, hot-rolled coil, tubes and merchant bars among its strongest-selling products in 2026, alongside mining-related grinding balls.
Supply and transport shocks remain a source of uncertainty. According to Alkagesta, a fatal mining accident in Shanxi in late May prompted safety inspections that suspended operations at 155 coal mines, helping lift coking coal futures to a 19-month high in early June. Weak seasonal demand nevertheless kept steel prices under pressure. The company also reported that a weekend of shipping disruption in the Strait of Hormuz affected both steel prices and freight rates.
Alkavex said successful transactions depend on financing, specifications, documentation and mill approvals as well as price. It described one deal in which vessel availability and shipment scheduling were decisive in meeting a customer’s deadline. The business is also expanding towards South America through access to Chinese-origin steel, while Alkagesta’s petroleum products relationships in Türkiye and Eastern Europe provide market knowledge and counterparty connections for entry into neighbouring markets.