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Monday, August 17, 2026

Domestic steel market outlook strengthens on construction, auto demand – report

Morocco’s steel demand is expected to rise by 7-8pct in 2026 to 2.75-2.82 mln tons, before exceeding 3 mln tons for the first time in 2027, according to local news reports.

Growth is expected to be driven by construction, automotive manufacturing, wind power and infrastructure projects linked to preparations for the 2030 FIFA World Cup.

Construction accounts for around 60-65pct of finished steel consumption and continues to benefit from housing and major infrastructure projects, including the Nador West Med port and rail developments.

The automotive sector is also becoming an increasingly important source of demand as Renault and Stellantis expand local production and component manufacturing. Automotive exports rose 15.9pct YoY to USD 8.2 bln in the first five months of 2026.

Wind energy and water infrastructure projects are providing additional demand, with around 1.1 GW of new wind capacity expected in 2026.

Domestic producers including Sonasid, Maghreb Steel, Univers Acier and Riva Industries maintain a strong position in the market, supported by investment incentives and protectionist trade measures favouring local production. Morocco nevertheless continues to rely on imports, with Spain, Turkey, the UK and China among its key suppliers.

The expected increase in consumption is likely to provide further support to both domestic steel production and import demand, particularly as infrastructure and industrial investment accelerates.

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