Alkavex, the steel trading arm of Alkagesta, is targeting infrastructure-led demand in Africa as rising Chinese exports intensify competition across international steel markets, according to Alkagesta Newsroom. The company also described an expansion into South America supported by its access to Chinese-origin supply, while emphasising the importance of financing and shipment coordination in securing business.
Citing the OECD’s Steel Outlook 2026, the newsroom said 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 rose from 19% in 2019 to 41% in 2025. Alkavex deputy chief executive Nijat Osmanli said Chinese supply frequently serves as buyers’ pricing benchmark, putting pressure on competing producers’ margins.
African demand forecasts offer a contrasting picture. According to figures reproduced by Alkagesta Newsroom, worldsteel’s April 2026 outlook forecasts steel demand growth across the continent of 3.8% in 2026 and 4.6% in 2027. The OECD estimates growth of 16.1% in 2025, slowing to 4.4% in 2026 as investment cycles mature. Chief executive Jean-Pierre Artigala linked the company’s African strategy to urbanisation and investment needs in housing, transport and industry.
The company identified 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. It said African trading conditions require attention to payment arrangements, transport and infrastructure constraints. In one transaction described without naming the customer, meeting a project deadline depended on vessel availability and shipment scheduling rather than a lower purchase price.
The newsroom also highlighted exposure to raw-material and shipping shocks. It reported that a fatal mining accident in Shanxi at the end of May prompted safety inspections and the suspension of 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. Separately, it said a weekend of disruption through the Strait of Hormuz affected steel prices and freight rates. Chief financial officer Sylvain Artigala said transaction-level financial discipline was central to managing rapid changes in margins caused by trade policy and raw-material movements.