The Egyptian Ministry of Trade and Industry recently announced it will offer 12 new licenses to build steel mills to meet demand and expected shortage by 2017.
The deadlines for launch these factories licenses will be determined by the end of this month, based on the recommendations to be submitted to the Minister.
According to the Egyptian Industrial Development Authority (IDA) the new mills are vital to the adequate supply of steel which is expected to reach to 5Mt by 2017 if the growth rate continue to rise at 7% , and rising to 6Mt if the growth rate reaches 8%.
The consumption of steel in Egypt has been steadily rising over the past four years, as massive infrastructural, housing and tourism projects were implemented to capitalise on the strong performance of the Egyptian economy and the subsequent increase in population purchasing power.
In 2004, total consumption was 3.4Mt and by 2007, was 5.2Mt. Egypt's per capita consumption of steel in 2007 was about 69.2kg, which was above the African average of 35.8kg. The reason for this discrepancy could be attributed to the large population that Egypt poses, 81.7M, and reflects the potential of the Egyptian market, as there is still a huge appetite for growth and development.
The resurgent metal and steel industries of the MENA region means that next year's Metal&Steel Exhibition (February 26 -28, 2011, Egypt), is well placed to once again provide the perfect platform for business across all aspects of the Middle East's metal, iron and steel industries.