The project will cover the entire steel value chain

The Algerian National Steel Company (SNS) and the Chinese group China Baowu are exploring opportunities for cooperation on an integrated steel project in Algeria. This is according to a statement from SNS.

The project will cover the entire steel value chain — from reserve assessment, iron ore extraction and processing to steel production, with a focus on value-added products and a low carbon footprint.

China Baowu presented its expertise and technologies for the direct reduction of iron ore to produce DRI and hot-briquetted iron, as well as other technological solutions and industrial digitalisation.

The parties discussed the prospects for developing ‘green’ iron and steel production in Algeria, as well as cooperation in the transfer of technology and expertise, the localisation of industrial activities and the strengthening of local integration.

Another team from the Chinese delegation visited the steelworks and port in Annaba to assess the existing industrial and logistical capacities and opportunities.

No agreements or investment decisions have been announced at this stage. It is reported that the parties agreed to continue technical, industrial and economic consultations in preparation for drawing up a joint roadmap and identifying priority areas for cooperation.

Algeria’s demand for finished steel is projected to reach 4.2–4.6 million tonnes by the end of 2026. It is one of the few countries where residential construction is not affected by economic crises thanks to stable state funding. This is the main driver of the local steel market — the construction sector accounts for 70–72% of steel consumption.