Steel has excellent prospects
The rising demand for stainless steel in the Gulf is opening new opportunities for SME firms.
The rising demand for stainless steel in the Gulf is opening new opportunities for small to medium-sized home building companies, according to Filipino Stainless Steel manufacturer Sanyo Seiki Stainless Steel.
"We are looking for distributors that would help strategically penetrate the Middle East market," said Glenn Chan of Sanyo Seiki. The company plans to bring its stainless steel products like coils, super polish welded tubes, welded pipes, plates and round bars and other stainless steel products to the Big 5.
According to a report by the Kuwaiti-based Gulf Investment Corporation (GIC), steel demand in the Gulf region is dominated by long products, driven by growth in domestic demand emanating from the strong construction boom. The region is also the net importer of products such as ingots, steel tubes, seamless tubes, hot rolled rod in coil, welded tubes, and cast iron pipes.
Demand for such products in the Middle East region is expected to increase from 70 million tonnes in 2007 to around 90 million tonnes in 2010. GCC steel demand, on the other hand, is estimated to be in the 20-30 million tonnes range for the same period.
Sanyo Seiki is now in its 20th year of supplying stainless steel products that contributed significantly to the requirements of the foremost industries, such as manufacturing, transportation, oil refining, food processing, mining and agriculture amongst others.