GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Real Estate

 
  Share

Dubai, UAE, April 19, 2017:  The steel consumption of the UAE market in 2017 is set to increase by 10 per cent as compared to 2016, while the domestic production capacity to address these volumes is already in place, say members of ‘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 & 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. 

The market is promising in the next couple of years as we foresee a good demand for our products for the ongoing projects in the UAE, especially the projects related to infra-development to host the World Expo 2020 in Dubai and other announced projects in the region.

Hosting the ‘Magnet', Mr. Bharat Bhatia, CEO of Conares, the second largest private steel manufacturer in the UAE, said the outcome of the session was very fruitful. All the participating local steel producers were open and transparent on the approach for a strategy to support the ongoing demand of rebars. The Magnet helps to keep the steel market efficient in the UAE, in order to meet the domestic and regional demands, balancing the supply and demand equation.

“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,” he added. 

Dr. Ramzi Al Halasa, Advisor & 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.”

Mr. Juma Al Mansouri – VP Sales at Emirates Steel Industry, a subsidiary of Senaat, said, “The UAE steel mills are capable to cater to the UAE's current consumption of 3.5 to 3.6 million tonnes of steel. However, a temporary effect will be seen on the market during the summer and Ramadan due to the slower construction activities during that time of the year. The OPEC's decision to cut oil production in November 2016 improved oil prices, encouraging the regional governments to increase expenditure on infra-development projects.” 

Mr. Omar Al Mashour, General Manager, Union Iron & Steel Company in Abu Dhabi, said, “We are now receiving sufficient support from the Government to protect the local steel manufacturing sector. We are optimistic for the next couple of years with the projects in Dubai, and Abu Dhabi is following the path with mega projects and major infrastructures. Our current annual production capacity is 320,000 tonnes of rebar, and planning to increase it up to 400,000 tonnes per annum. We also are planning to install a welding machine to minimize the wastage and increase production yield.” 

“As the UAE establishes itself as self-sufficient in steel rebars, most of the local steel traders now enjoy the economic advantage of sourcing products from UAE-based steel mills that meet their demand and price. Though local mills are unable to show the margins as desired, they support the local traders considering the international market prices and act responsibly while managing the business strategy. Moreover, the locally-manufactured steel products, labelled as ‘Made in UAE', are more reliable than imports that usually take minimum of 30 days to arrive in the UAE,” Mr. Bhatia further said.

The UAE economy is increasingly diversified and supports large and experienced corporations active in the regional and global markets. A recovery in oil prices coupled with a modest increase in the UAE oil production in 2017 will be supported by a recovery in non-oil related economic activity to boost investment ahead of the Expo 2020. The higher GDP growth between 2017 and 2020 in comparison with the growth in 2016 is combined with growing public and private sector activity boosted by Dubai Government's preparations to host the Expo 2020.

The recovery, largely driven by real estate, transport and power projects in Dubai, is expected to support an increase in major project spending across the UAE after a year of correctional growth in 2016. Abu Dhabi's metro and light rail plans and expansion of Al-Maktoum International airport and further phases of Etihad Rail's federal railway to execute will also contribute to this growth. 

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. 



Posted by : GoDubai Editorial Team
Viewed 10986 times
Posted on : Wednesday, April 19, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Al Qudra Showcases Authentic and Modern Future Projects at Cityscape Abu Dhabi 2017
Next Story : Mövenpick Hotels & Resorts' Pakistan Presence Blooms as Firm Signs New Property in the ‘City of...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Fresh Hair in an Instant with SHOW Beauty
Amadeo® Fleurier 39 “Fan”
Mother's Day Gift Guide 2018 from The Little Birdy Group
Show/Pop-up Event “Pret-A-Cover™ Buyers Lane” to Be Launched in Dubai From March...
Moreish Café in Dubai introduces a healthy Quinoa Burrito
True Colours
Robinsons Honored for Outstanding Store Design
Splash receives 2 awards
UAE Team Emirates' Mirza Takes Gold at Asian Cycling Championships
Phenomenal development in falconry racing from small beginnings: HHC Deputy CEO
WGS 2018: Opening Session Highlights Importance of Embracing Smart Living to Enh...
RAK Hospital launches the biggest weight-loss challenge in association with MoHA...
2XL launches Malmo Bed with floral designs for a vintage shabby chic inspired ma...
Food Lovers Rejoice: Dubai Food Festival Is Back This Month
Bridal Glow is Skin Deep: Tips for every bride-to-be in 2018
Mealtop, Introducing a Whole New Dessert Experience
Optim-Eyes Lashes & Brows with Filorga
Al Ahli Holding Group to redefine the UAE value shopping category through an AED...
NEZO launches new identity to guide consumers in selecting the best salt for the...
Safilo Group Reveals Its Spring/ Summer 2018 Collection
WGS 2018: Governments Need to Prioritize Wellbeing of Citizens, Say Internationa...
Redefining the Skin Clinic Experience. #allnewkaya opens in Muscat City Centre!
The new BMW HP4 RACE arrives at Abu Dhabi Motors – one of just 750 built
The Robots Are Coming: Ministry of Finance Brings Artificial Intelligence to Dub...
Leading Scientists, Astronauts Share Insights on why Space Exploration Matters a...
Kate Spade New York Spring 2018 Collection
New Report from Accenture and the World Government Summit Finds That Regulators ...
ADNOC Schools Team Wins Etihad Artificial Intelligence Competition
Garbiñe Muguruza Hungry for Success at Dubai Duty Free Tennis Championships
First Ever UAE Race Car Fitted with Immensa 3D Printed Parts
Global Expansion in sight for ICONS© Coffee Couture
WGS 2018: Innovation to Propel Dubai into the Next Century
WGS 2018: Governments of the Future Must Work Smartly with Innovation and Technology
Catch Some Zzz's in the IKEA Nap Truck
Dubai Electronic Security Center Receives Overwhelming Interest From Regional an...
Turkish Airlines has announced its 2018 January passenger and cargo traffic results.
Global energy shifts set to transform the Middle East energy sector
Emirates firms up order for up to 36 additional A380s
Dubai Airports' new Modular Data Centre Complex (MDCC) a 'world first'
Al Ghurair Foundation for Education Event on ‘Graduating Work Ready Youth' Unvei...
Dual Investments Brand LE66 to Relocate from City Walk to New Dubai Location in 2018
WGS 2018: Global Policy Platform Panel Considers Supporting Female Entrepreneurs...
Do You Feel Sleep Deprived? Nearly Half of UAE Would Give Up Social Media for an...
WGS 2018: Renowned Innovation Expert Fast Forwards Time to Showcase Glimpse of t...
South African artisans of fine leather products look to make big impression at L...
Former Indian Space Chief Presents Country as a Global Low-Cost Provider of Sate...
WGS 2018: For the Future of Mankind, Mars is the Next Frontier, Says Renowned Ar...
15,000 participate in the Dubai Cares' annual Walk for Education 2018 in support...
Ground-breaking cellular therapy set to revolutionise treatment for children wit...
DAMAC Properties deliveries surpass 20,000 unit milestone as it reports net prof...