Increasing establishments of production by various steel manufacturers across Egypt led to decreased imports of stainless steel pipes and tubes over the last few years.
Egypt is a major steel-consuming country in North Africa. Over the next few years, increased additional demand for stainless steel across the country might increase the demand for stainless steel for imports.
According to the study published by Ezz Steel Forecast, the steel consumption in North Africa is expected to increase from 22.8 million tones in 2018 to 23.8 million tones in 2019.
The key players operating in Egypt seamless steel pipes & tubes market includes Zamzam Steel, Santok Steel Corporation, ZEINOX, ArcoSteel, AK Steel Holding are among many other regional and global companies.
The companies across Egypt are focusing on establishing new production plants to meet the demand from domestic industry and increase in its exports to Europe and US.
For instance in October 2019, Egyptian Arab Metals (Zeinox) is planning to establish USD 70-100 mn production plant to meet local supply needs and increase its export to Europe and US. The company is currently conducting a feasibility study for a new plant with European Bank for reconstruction and developments.
Covid-19 impact on Egypt Seamless Steel tubes & pipes market
Covid-19 has affected the production activities across the country due to the stringent government measures to control the spread of the virus across the communities.
Major steel processors across the country have curtailed their operations in the wake of restrictions during the lockdown to contain the spread of virus, and are facing labour shortages.
Shortage of manual labour and operators for the loading and unloading of raw material and finished products, and majority of the processing units are currently under care and maintenance mode.
Reduced production activities across the OEM manufacturers in automotive, aerospace, consumer electronic goods, processing machinery has led to decrease in orders among the manufacturers in seamless steel pipes & tubes.
Construction and infrastructures activities are also likely to slow further due to minimal availability of manual labour resources, and stringent government regulations is expected to significantly affect the market.
The recovery of the seamless steel tubes & pipe market in Egypt can only be observed later this year if the economic stimulus programs imposed by the government has significant impact.
New Industrial Investments in Egypt
In November 2019, UAE and Egypt entered into a joint strategic investment program worth USD 20 billion to implement vital social and economic projects.
In September 2019, Egypt's renewable energy firm is expected to increase the investments in the local market to USD 250 million by 2030 for the establishments of 32 waste-to-energy plants.
In June 2019, Egypt signed a corporation agreement with Bosch to establish its production facility on the 10th of Ramadan.
In February 2020, The contract was signed between Assinut Oil processing Company and Enppi & Techint Engineering worth USD 2.5 billion for the establishment of an oil refinery.
In November 2019, USD 2 billion is expected to be invested in the construction of biomass power plants in Egypt, the investors that are willing to initiate construction include Egyptian Company for Solid Waste Recycling, Empower Energy, Global Knowledge Company (GKC), China Power International Development, Shanghai Electric.
In January 2020, Exxonmobil and Egypt signed two oil & exploration deals in Eastern Mediterranean worth USD 332 million.
In December 2019, Egypt received investment of USD 155 million for the exploration of oil & gas wells in Western Desert, the Gulf of Suez and the Nile Valley. These agreements include drilling of 30 wells.
In February 2020, Dragon Oil is planning to increase the investments in Egypt through acquiring assets in western deserts to increase its production to around 300,000 bbl/day by 2024.
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