Demand for steel rebars in UAE to increase by 10%
Demand for steel rebar in the UAE is set to increase by 10% in 2017 as compared to last year, according to ‘Magnet’, a UAE-based platform to discuss and disseminate insights on the steel industry
Demand for steel rebar in the UAE is set to increase by 10% in 2017 as compared to last year, according to ‘Magnet’, a UAE-based platform to discuss and disseminate insights on the steel industry.
Key industry stakeholders including Emirates Steel Industries, Conares, Hamriyah Steel and Union Iron and Steel participated in the ‘Magnet’ session held recently in Dubai for the rebar producers.
The session covered discussions based on the current steel market outlook, which is very stable in terms of demand and supply.
The rise in the number of infrastructure-development projects since the beginning of this year is in line with the strong recovery of economic growth in the UAE.
Hosting the ‘Magnet’, Bharat Bhatia, CEO of Conares, the second largest private steel manufacturer in the UAE, said: “The steel industry trends, taking shape this year moving towards the Expo 2020, remain positive with anticipated offtake to increase by the last quarter of this year.
“Starting from the first quarter of 2018, the demand is foreseen to accelerate by 10 per cent and may reach up to 360,000 per month to support the speed of construction activities.”
Dr. Ramzi Al Halasa, advisor and board director of Hamriyah Steel in Sharjah, said that the market is positive at the moment. “With the current consumption of steel rebars in the UAE, we at Hamriyah Steel, provide 50 to 60,000 tonnes per month.
The market is stable in line with the projects coming up to host the Expo 2020. Our vision is to drive the market beyond 2020, targeting projects to support the UAE Economic Vision 2030.”
Infrastructure developments - either government or private investment spending - remain the main driver that influences the steel demand. When it comes to other factors that influence steel demand in the UAE, liquidity of the private constructions companies and trading companies equally plays an important role in these on-going developments.
The Magnet acts as a way to help keep the steel market efficient in the UAE, in order to meet the domestic and regional demands, balancing the supply and demand equation.