Alkagesta’s steel trading business, Alkavex, is pursuing growth in Africa and expanding into South America as rising Chinese exports intensify competition. In an operational update, Alkagesta said its steel business was relying on established customer relationships, access to Chinese supply and transaction-level financial controls to navigate volatile prices and changing trade conditions.
The company cited the OECD’s Steel Outlook 2026 as showing that Chinese steel exports increased by 13.8% in 2025 to a record 131.2 million tonnes. Over the same period, global steel exports excluding intra-regional trade declined by 6.2%. 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.
Africa remains the principal focus of Alkavex’s growth strategy. Alkagesta cited Worldsteel’s April 2026 outlook, which forecasts African steel demand growth of 3.8% in 2026 and 4.6% in 2027. CEO Jean-Pierre Artigala linked the opportunity to urbanisation and investment in housing, transport and industrial projects. 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.
Alkagesta said successful transactions depend on specifications, financing, documentation and mill approvals as well as price. In one recent deal described in the update, meeting a customer’s project deadline depended on arranging vessel availability and shipment timing rather than securing a lower purchase price. CFO Sylvain Artigala said financial discipline was intended to let the business respond quickly without accepting inadequately assessed risks.
Access to Chinese-origin material is also supporting Alkavex’s expansion into South America, according to Alkagesta. The parent company said its petroleum products relationships in Türkiye and Eastern Europe provide market knowledge and counterparty contacts for further steel-market development. It identified price volatility, trade restrictions and freight disruption as key risks over the next six to twelve months.
Read the original announcement on Alkagesta.