The 11th Middle East Iron and Steel Conference was held in Dubai, UAE, on 9-11 December, 2007 with the participation of producers, traders, stockholders, transport/logistics directors and steel analysts from many different countries.
The conference, which represented a major networking opportunity for key regional and international players doing business in the Middle East, focused mainly on the increasing demand for steel and the global steel trends.
The overall scenario gathered from the representations made at the conference is as follows:
While there is strong growth in global demand for steel, China continues to be the main driver behind this growth. The growth in steel demand in the Middle East region is higher than the average global rate due to the high consumption of construction steel in the Gulf Cooperation Council (GCC) countries.
Strong demand, high scrap and iron ore prices, and increasing freight rates are expected to keep finished product prices at higher levels in the GCC region.
The rapid expansion in construction and mega oil & gas projects have boosted steel consumption in the region, with GCC per capita steel consumption at around 450 kg, much higher than the world's average per capita consumption level of 182 kg.
Strong investments in the GCC countries are mainly seen in civil projects backed by high oil revenues. Oil prices have been boosting rebar consumption since 2003, and rebar prices are expected to continue at high levels.
Local supplies are expected to increase in the UAE, Saudi Arabia and Oman due to new capacity expansions and greenfield steel projects. Imports from non-GCC countries, mainly from Turkey, continue to dominate supplies to the region. Imports of Chinese material to the region have been seen since 2006; however, higher freight rates and the export tax imposed on Chinese steel products have hampered imports from China recently.