Bhaskar Dutta at IREPAS: Higher steelmaking capacity in MENA reduces import demand

Speaking at the SteelOrbis 2014 Spring Conference & 70th IREPAS Meeting in Barcelona, Bhaskar Dutta, CEO of the Omani steel and pipe manufacturer Al Jazeera Steel, stated that rebar consumption in the GCC countries is expected to rise to 12 million mt this year, rising from 11.55 million mt in 2013. Among the GCC markets, Saudi Arabia is foreseen to reach seven million mt in terms of rebar demand this year - up from 6.5 million mt, while another major market, the UAE, is expected to increase its rebar consumption to three million mt, as compared to 2.8 million mt last year.
 
However, Mr. Dutta said he is expecting rebar sales from Turkey to the GCC to decrease by 500,000 mt this year to one million metric tons, as total rebar production capacity in the GCC is anticipated to increase to the level of 18 million mt, up from 16 million mt  in 2013.
 
According to the figures presented by Mr. Dutta, steelmaking capacity in the Midde East and North Africa (MENA) region via electric arc furnaces is expected to rise by 14.85 million mt in 2013-2014, while total new DRI capacity in the region is anticipated to reach 23.71 million mt in the same period. Among the MENA markets, Iran is the only country where an integrated steelmaking plant is being constructed, with a designed annual capacity of 1.90 million mt.
 
Mr. Dutta showed in figures that Turkey has been the leading rebar exporter to the MENA region with annual volumes of 4.6 million mt both in 2012 and 2013, while Ukraine is the main steel billet supplier to the region with 5.5 million mt of billet sales in 2013, rising from 4.5 million mt in 2012. In 2013, Turkey's steel billet exports to the MENA region declined to 1.1 million mt, down from 2.6 million mt in 2012.