Trade between Algeria and Italy has seen remarkable growth, approaching €9 billion in the first eight months of 2025. This surge highlights the strengthening economic ties between the two nations, driven by both traditional energy exports and a growing non-hydrocarbon sector.
Italian imports from Algeria reached €7.05 billion during this period, with natural gas remaining the dominant commodity, accounting for 84% (€5.94 billion). However, significant growth was observed in non-oil sectors, particularly in steel products.
Steel Exports Surge
Steel exports from Algeria to Italy experienced an exceptional increase of 169.6% compared to the same period last year, reaching a value of €121 million. This growth is linked to a strategic industrial agreement worth approximately €1 billion, signed in July 2025 between the Italian steel industry association “CEIPS S.c.a.r.l” and the Algerian company “Kouber Sud”.
The agreement involves the construction of a direct reduced iron (DRI) plant in Algeria. This energy-intensive industry thrives in countries with substantial natural gas reserves and competitive pricing, advantages that Algeria possesses.
Diversifying Exports
Beyond iron ore, Algeria continues to diversify its exports to Italy. Refined petroleum products reached €580 million, despite a slight decrease of 10.6%. Chemical products and fertilizers performed well, reaching €87 million, an increase of 65.3%. While these figures remain smaller than gas revenues, they indicate a gradual diversification of Algerian exports.
Algerian Imports from Italy
Algeria’s imports from Italy totaled €1.93 billion in the first eight months of the year.
This growing trade relationship underscores the importance of Algeria as a key economic partner for Italy, with potential for further growth and diversification in the years to come.
