Sudarshan Singh, the group technical director of Al-Tuwairqi Group of Saudi Arabia, stressed the importance of the Middle Eastern region to the steel world while addressing the Steel Success Strategies Conference in Paris.
Mr. Singh listed the booming sectors in the oil-rich Middle East region as transport, construction, petrochemicals, and the power generation & supply industry, assisted by advantages such as moderate labor costs and tax-free business.
Emphasizing in particular the construction boom in the Middle East, Mr. Singh referred to the four projected tallest towers in the world - Burj Dubai (818 m), Mubarak Tower in Kuwait (1001 m), Al Burj in Dubai (1050 m) and Mile Tower in Jeddah, Saudi Arabia (1600 m), as well as many major infrastructure development, power generation and petrochemical sector projects. He remarked that steel consumption has increased by 9.5 percent both in the Middle East and Asia, whereas the increase in the EU is only 1.5 percent and 3.1 percent in NAFTA countries. According to Singh, crude and finished steel production in the Middle East will reach 26 and 33.6 million tons per year respectively in 2010, up from 15.8 and 22.9 million tons per year in 2006. He said that GCC (Gulf Cooperation Council) countries would be investing over US$5.8 billion in the iron and steel industry over the next three years.
Looking forward to the coming years, Mr. Singh stated that outdated technology would have no future in the industry and that the Middle East would be one of the most favorable regions for the production of crude steel and semis in particular. He added that high oil prices would make the Middle East more stable and stronger, and that the countries in the region could play an important role in the development of Africa.
Stressing that the top five iron ore producers in the world account for 65-70 percent of ore output whereas the world's top five steelmakers hardly account for 20 percent of steel production, Mr. Singh said there should be more consolidation in the steel industry.