Speaking on Monday at the SteelOrbis 2023 Fall Conference & 89th IREPAS Meeting held in Istanbul on September 17-19, Sunil Kumar, chief marketing officer of Jindal Shadeed, said that the GCC steel market is expected to grow by 6.2 percent annually in the period up to 2030, with its flat and long steel demand expected to reach 38 million mt, from approximately 23 million mt currently. He added that the key drivers for the demand growth are increasing infrastructure development and mega projects such as metro expansions, rising population and urbanization, and the focus on the development of the non-oil-based manufacturing sector.
Mr. Kumar touched upon the opportunities which GCC-based steel producers have, namely, easy access to export markets and good port infrastructure, the availability of gas supporting the development of DRI-EAF facilities, and the increasing investment in renewable energy and the drive towards a hydrogen economy. With the advantage of availability of gas, the Middle East could soon become a hub for DRI-EAF manufacturing, he remarked. On the other hand, there are some restraints such as volatility in raw material prices and limited market size and the uncertain political situation in the region. The Jindal Shadeed official stated that, regarding the political situation, there are signs of stability with respect to Iran and Yemen, while there are more developments in relation to peace in the region in general.
While steel demand in the GCC region is expected to amount to 23 million mt in 2023, its long steel consumption is expected to reach almost 14 million mt. Mr. Kumar pointed out that steel production capacity in Saudi Arabia and Oman is expected to increase, from 11.6 million mt to 13.6 million mt and from 4.2 million mt to 9.6 million mt, respectively. In Oman, new capacities are expected in the flats segment, while the longs segment is likely to see more of a consolidation rather than new greenfield sites. Currently, there is no flat steel or wire rod production in Oman, and so the country needs asset creation for flat steel and wire rod to spur downstream capabilities in automobiles, white goods, pipes and tubes, and fabrication.
Talking about Oman’s “Vision 2040” for the future which foresees the transition from an oil-based economy to a non-oil-based economy, Kumar said that Jindal Shadeed is set to invest over $4 billion in new plants in order to align with Oman’s growth story.