Midde East steel production surges

23 February 2017

Four largest producers record double-digit growth in January as market shows signs of recovery

Steel output in the Middle East has rebounded as the region’s four top producers recorded double-digit year-on-year growth in January, according to World Steel Association (Worldsteel) estimates.

The four Middle East countries monitored by Worldsteel boosted crude steel production by 13.5 per cent to 2.57 million tonnes compared with 2.26 million tonnes January 2016.

By volume, Iran saw the biggest increase with an 11.3 per cent jump to 1.52 million tonnes from 1.37 million tonnes, while Saudi production was up 16 per cent to 483,000 tonnes.

Crude steel production in Qatar rose 24.1 per cent to 247,000 tonnes, while output in the UAE was up 12.9 per cent to 318,000 tonnes.

The 67 companies worldwide monitored by Worldsteel increased output by 7 per cent to 136.5 million tonnes driven by a significant recovery in Chinese output.

Steel production has been lifted in line with rising prices as the market reacts to stronger Chinese growth forecasts. European steel prices surged 82 per cent last year, according to Metal Bulletin, while benchmark rates for iron ore and coking coal also increased.

The world’s largest steel producers ArcelorMittal forecast in its annual results report in February that global steel consumption would rise by as much as 1.5 per cent in 2017 compared with 1 per cent last year.

Worldsteel estimates show global capacity utilisation rose to 68.5 per cent in January 2017 compared with 65.1 per cent in the same month last year.

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