Resilient Growth Driven by Manufacturing Demand, Imports, and Regional Production Capacity
Africa’s industrial sector is witnessing steady evolution, and one of the notable movers in recent years is the wire rod of free-cutting steel market. Bolstered by rising demand across construction, automotive, and precision engineering sectors, the continent’s market is projected to reach 201,000 tons in volume and $192 million in value by 2035, according to industry forecasts.
The market is expected to grow at a modest yet stable CAGR of +0.8% in volume and +1.7% in value from 2024 to 2035—reflecting not a boom, but consistent industrial uptake driven by both domestic and imported supply chains.
A Remarkable Jump in 2024: Setting the Stage
In 2024, the market reached a peak of 183,000 tons, marking a 93% increase compared to 2023, while the value soared by 106% to $159 million. This dramatic upsurge set the tone for a market that, while not accelerating rapidly, is maturing and positioning itself as a vital segment within Africa’s broader steel ecosystem.
Consumption Trends: Ghana, Algeria, and Mauritius Take the Lead
Three countries dominate regional consumption:
- Ghana led the continent with 57,000 tons, followed by
- Algeria (36,000 tons), and
- Mauritius (29,000 tons).
Together, these three markets accounted for 66% of Africa’s total consumption in 2024.
Ghana, in particular, has emerged as a growth engine, with a CAGR of 97.0% in volume and 98.8% in value since 2013—fueled by a combination of infrastructure projects, favorable import conditions, and a growing manufacturing base.
On a per capita basis, Mauritius leads with 23 kg per person, dwarfing the continental average of just 0.1 kg per person. Ghana and Senegal follow, indicating a geographical shift in industrial consumption beyond traditional North African hubs.
Production Output: Algeria and South Africa Take Charge
Africa’s wire rod of free-cutting steel production reached 86,000 tons in 2024, up 7% year-on-year, with Algeria (36K tons), South Africa (23K tons), and Nigeria (10K tons) making up 80% of all production.
From 2013 to 2024, Algeria posted the highest production growth, averaging +8.4% annually—benefiting from public investment and regional industrial strategies aimed at reducing reliance on imports.
In terms of value, production reached $91 million, marking an all-time high and indicating robust local demand and improved value chain performance.
Imports Surge: Ghana and Mauritius Dominate
Despite growing production, Africa’s import needs remain substantial. In 2024, imports jumped by 115% to 125,000 tons, valued at $136 million.
Ghana accounted for 51% of all imports (63K tons), followed by Mauritius (28K tons) and Senegal (22K tons)—highlighting West Africa’s growing dependence on external supply to meet its domestic demand.
In value terms, Ghana again topped the list with $99 million in imports, a CAGR of nearly 80% since 2013. Mauritius and Senegal followed with $19M and $10.2M, respectively.
Interestingly, import prices also surged to an average of $1,085 per ton, with Ghana paying the highest rate at $1,564 per ton, indicating a focus on high-quality or specialized products.
Export Market Fluctuates, But Value Spikes
Africa’s export story is more complex. In 2024, export volumes fell 35.6% to 28K tons, after three consecutive years of growth. However, export values rose sharply to $49M, suggesting a shift toward higher-quality or higher-priced goods.
Export leaders include:
- South Africa (6.6K tons),
- Ghana (6.6K tons),
- Nigeria (6.1K tons), and
- Tunisia (4.5K tons).
The standout performance came from Nigeria, whose export volume grew at an astonishing +509.1% CAGR, followed closely by Egypt, which became the continent’s top-value exporter at $29M, despite lower tonnage.
Export prices reached $1,741 per ton, led by Egypt at a premium of $9,700 per ton, suggesting a strong move into value-added exports and niche applications such as automotive components and machining.
Outlook to 2035: Steady Growth Anchored by Demand
Looking ahead, Africa’s wire rod of free-cutting steel market is expected to grow steadily:
- Volume to reach 201K tons
- Market value to hit $192M
- Import dependency to continue, albeit with stronger regional capacity
- Focus on high-end products to dominate export and pricing strategies
Industrial users in Ghana, Algeria, and Mauritius will remain core to market performance, while Algeria and South Africa continue to lead production. Meanwhile, Nigeria’s sharp rise signals the emergence of new players in the export arena.
Africa’s free-cutting steel wire rod market is not a tale of explosive growth, but one of resilience, regional diversification, and gradual industrialization. For stakeholders—from policymakers to manufacturers and traders—the next decade presents an opportunity to invest in processing capacity, import substitution, and intra-African trade.
As demand stabilizes and local capabilities expand, Africa’s steel economy is gradually cutting its way into the global supply chain—with precision.
