Forging a New Era: Algeria’s Steel Industry on the Path to Self-Sufficiency

The COVID-19 pandemic disrupted global supply chains and forced many nations to rethink their industrial dependencies. For Algeria, this period accelerated a transformation in its steel sector, moving from heavy reliance on imports toward greater domestic production capacity, though the journey to complete self-sufficiency continues.

Prior to and during the pandemic, Algeria imported large quantities of steel products to meet domestic demand, particularly for infrastructure and construction projects. The government’s commitment to developing local steel production capacity intensified as supply chain disruptions exposed the vulnerabilities of import dependence. This policy shift represented a calculated move toward economic diversification and industrial resilience.

The foundation of Algeria’s industrialization strategy has been the expansion of major steel facilities, particularly the Algerian-Qatari Steel Company (AQS) in Jijel and Tosyali’s operations near Oran. These investments have dramatically reduced import dependency for certain steel categories, particularly rebar and wire rod. According to Arab Iron and Steel Union, 2024, AQS achieved production of over 1.6 million tons in 2023, with export revenues exceeding $400 million. Meanwhile, Tosyali Algeria produced 3 million tons in 2022 and exported approximately 1.3 million tons worth more than $800 million (GMK Center, 2023).

However, Algeria has not yet achieved full self-sufficiency across all steel product categories. The country continues to import flat-rolled steel products, particularly those required by the automotive and packaging industries. To address this gap, Tosyalı Algérie launched its flat steel production line in May 2024, which is now operational in part and expected to reach full capacity after the commissioning of its cold-rolling and galvanizing units in 2025 (GMK Center, 2024; Midrex Technologies, Inc., 2024). Meanwhile, the AQS complex remains focused on long and rolling products such as rebar and wire rod, supported by DRI and EAF technologies.

As reported by Midrex Technologies, Inc. (2025) and Algerian Qatari Steel (2025), AQS has announced a Phase II expansion project aiming to raise total production capacity to 4 million tons per year and diversify into new steel product types, with completion anticipated by late 2025 or early 2026. According to the Arab Iron and Steel Union (2024), the Algerian government has continued to apply protective trade measures, such as import restrictions on selected steel products, to strengthen domestic producers while these new flat-steel capacities become fully operational.

Algeria’s steel transformation shows real progress in reducing import dependency and building export capabilities. While complete self-sufficiency remains a future goal rather than current reality, the investments in domestic capacity (projected to reach 11-12 million tons annually) position Algeria as an increasingly important regional steel producer and a model for industrial diversification in post-pandemic economic development.

References

Algerian Qatari Steel. (2025). Minister of Industry visits AQS Bellara complex and reviews Phase II expansion plans. Retrieved from https://aqs.dz/news-details-34-minister-of-industry-and-pharmaceutical-production-dr-sifi-gharib-visits-the-algerian-qatari-steel-complex.

Arab Iron and Steel Union. (2024). Algerian steel industry is witnessing a diversification of products in H2 of 2024. https://aisusteel.org/en/25944/.

GMK Center. (2023, December 26). Tosyali Algeria will complete the expansion project by 2025. https://gmk.center/en/news/tosyali-algeria-will-complete-the-expansion-project-by-2025/.

GMK Center. (2024, May 21). Tosyali Algérie starts exporting hot-rolled coils. Retrieved from https://gmk.center/en/news/tosyali-algerie-starts-exporting-hot-rolled-coils/.

Midrex Technologies, Inc. (2024). Tosyali Algérie: Jewel of the Algerian steel industry. Retrieved from https://www.midrex.com/tech-article/tosyali-algerie-jewel-of-the-algerian-steel-industry/.

Midrex Technologies, Inc. (2025). Algerian Qatari Steel (AQS): Expansion project overview. Retrieved from https://www.midrex.com/tech-article/algerian-qatari-steel-aqs-at-first-glance/.