According to Ezz Steel Company’s report to the Egyptian Stock Exchange, local consumption of rebar decreased by 28% during the first half of 2023, reaching 2.8 million tons as a result of the economic crisis and price inflation. Actual production (reinforcing steel – wire rod) also decreased by 20%, reaching 3.567 million tons, and rebar exports reached 753,000 tons in the first half of this year.

According to the World Steel Organization, world production of crude steel decreased by 1.1% to reach 944 million tons in the first half of 2023 compared to the same period last year, as a result of inflationary pressures, high interest rates and the repercussions of the conflict between Russia and Ukraine, and the regions were most affected by the decline in production. They are the European Union (10.9%), South America (7%), North America (3.5%), Russia and Ukraine (3.4%), and the rest of the European countries (14.1%).

While China’s production increased by 6% in the first quarter of 2023, this rate was unable to continue in the second quarter (and the first half as a whole) due to the contraction of the real estate sector and attention to environmental policies. Therefore, China’s production growth in the first half of 2021 stabilized at 1.3% compared to the same period last year.

According to the Ezz Steel report, industry experts expect global steel consumption to maintain its level in 2023 at 1,885 million tons, with the market beginning to regain its strength and witnessing limited growth, in light of the negative impact of global inflation on consumption, especially in the United States and Europe. And Japan, and the Russian-Ukrainian conflict affects the consumption of both countries, and this is balanced by an expected growth of 2% in China’s consumption in the year 2023.