Syria's steel demand could increase to 4-5 million metric tons (mt) annually as large-scale reconstruction and urban development accelerate, according to Anas Joud, chairman of Syrian steel producer Joud Steel.
Syrian steel mills operate at 20-30 percent capacity
In an interview with the Arab Iron and Steel Union, Joud stated that Syrian steelmakers are currently operating at only 20-30 percent of their installed capacity, mainly due to limited electricity supplies and high energy costs. Joud Steel has restarted one of its plants following an 11-year shutdown, although operations remain limited to three days per week, with production totaling 5,000-6,000 mt.
Syria consumed approximately two million mt of steel annually before 2011, while domestic production capacity is estimated at 2-2.5 million mt per year. Joud expects consumption to initially exceed two million mt and subsequently rise to 3-4 million mt as reconstruction gathers pace, potentially reaching five million mt in the longer term.
Energy costs remain the main obstacle
According to Joud, electricity and fuel costs in Syria remain higher than in neighboring Turkey, restricting domestic mills' competitiveness against imported steel. However, the gradual rehabilitation of power stations and planned energy investments are expected to support higher utilization rates and eventually allow plants to operate continuously.
Joud also highlighted Turkey's growing importance as a source of raw materials, spare parts and technical expertise. Turkish specialists have already supported the restart of Joud Steel's operations, while investors from Turkey and Arab countries are evaluating potential partnerships in Syria.
Joud stated that steel products arriving from Turkey are helping to bridge the supply gap in the Syrian market in the short term, while noting that imports are placing competitive pressure on domestic producers. Highlighting Turkey's advantages in terms of production scale and technological infrastructure, Joud said that Syria's existing rolling mills could largely meet domestic long steel demand if they operated at full capacity. Consequently, imports are concentrated mainly on flat steel products, for which local production remains more limited.
Port recovery improves steel supply chains
The resumption of activity at the Latakia and Tartus ports, together with the return of international shipping companies, has improved access to imported raw materials and industrial equipment. While Syria continues to permit steel imports, the government has introduced certain duties and incentives to protect domestic producers.
Joud noted that most locally produced steel is currently consumed within Syria and that exports are unlikely in the near term, as reconstruction, infrastructure rehabilitation and housing projects are expected to absorb available output. If domestic capacity proves insufficient, Syria may require additional steel imports and new investments to meet its rapidly expanding demand.
The steelmaking plant established by Joud Steel together with other investors in the Adra Industrial City near Damascus reportedly has an annual billet production capacity of 800,000 mt. Although the company has restarted one of its facilities following a shutdown of more than 11 years, it is currently operating at approximately 30 percent capacity and only three days per week due to insufficient electricity supplies, with production standing at 5,000-6,000 mt. Joud Steel is expected to gradually increase its capacity utilization as energy supplies improve and skilled technical personnel return.
