Alkavex, the steel trading arm of Alkagesta, is prioritising African markets as rising infrastructure demand meets increased competition from Chinese exports, according to a company update published by Alkagesta. The business identified vessel availability, shipment scheduling and transaction financing as important factors in securing business alongside price, with freight disruption and trade restrictions among the risks ahead.
Citing the OECD’s Steel Outlook 2026, Alkagesta reported that Chinese steel exports increased by 13.8% in 2025 to a record 131.2 million tonnes. That contrasted with a 6.2% decline in global steel exports excluding intra-regional trade. China’s share of world steel exports reached 41%, compared with 19% in 2019. Deputy CEO Nijat Osmanli said Chinese supplies frequently serve as buyers’ pricing benchmark, putting pressure on competing producers’ margins.
The company pointed to two forecasts indicating further growth in African consumption. Worldsteel’s April 2026 outlook projected steel demand increases of 3.8% in 2026 and 4.6% in 2027. Separately, the OECD estimated growth of 16.1% in 2025, slowing to 4.4% in 2026. CEO Jean-Pierre Artigala linked Alkavex’s African strategy to urbanisation and investment in housing, transport and industry. Alkagesta listed wire rods, beams, hot-rolled coil, tubes and merchant bars among its strongest-selling products in 2026, alongside grinding balls used by the mining sector.
Logistical coordination can outweigh small price differences, the company said. In one transaction described without identifying the customer, meeting a project deadline depended on aligning vessel availability with shipment timing. Osmanli also highlighted specifications, documentation, financing and mill approvals as factors affecting delivery, given the costs of interrupted mill production and delayed construction or industrial projects.
CFO Sylvain Artigala said financial controls were intended to support timely transactions while assessing exposure to sudden policy or raw-material price changes. Alkagesta said Alkavex was also expanding towards South America through access to Chinese-origin supply. Existing petroleum trading relationships in Türkiye and Eastern Europe were providing market knowledge and counterparty contacts for expansion into neighbouring markets, according to the company.
Read the original announcement on Alkagesta.