The Algerian government has pledged USD 298 billion worth of investments over 5 years which is expected to boost steel demand and consumption in Algeria.

Mr Michel Cassou chief marketing officer from ArcelorMittal Annaba said that the investment will be used to improve infrastructure, transport and housing in Algeria.

Mr Cassou told delegates at the North African Steel conference at Casablanca in Morocco that “The 5 year investment plan will have an impact on the whole economy. It will be driven mainly by state owned companies. Private investors will benefit from this too.”

He said that the Middle East and North Africa region is a positive area for growth in demand and consumption. GDP is forecasted to grow by an average 4.6% from 2013.

Mr Cassou said that long products mainly rebar represented the largest product consumed by the local Algerian market. Rebar represents 47% to 50% of total steel consumption in Algeria followed by tube which is 18% to 23% of consumption, flats equate to 15% to 17% and wire rod 9.5% to 10% of consumption."

He said that some rerollers in Algeria are at a standstill due to high scrap and billet costs. It's not worth their while to import billet to roll and sell as rebar at the current market price.

(Sourced from www.arabsteel.info)